Japanese Cryptocurrency Exchange Companies Merges, Forms Self-Regulatory Body
After the recent Coincheck hack, a group of Japanese cryptocurrency exchange industries would merge to form a new self-regulatory organization.
According to Reuters, which cites unidentified sources close to the group, 16 exchanges are merging to form self-regulatory body after the Coincheck exchange had $533 million in NEM tokens stolen in a security breach in January. The new organization could be announced as soon as next week, the report suggests
The initial plan to merge the two primary cryptocurrency industry groups – the Japan Cryptocurrency Business Association and Japan Blockchain Association – could not be agreed upon, and the exchanges had decided to form a new organization that would be registered with the country’s financial regulator, the Financial Service Agency (FSA).
According to the report, talks about a self-regulatory organization were accelerated following last month’s infamous hack of cryptocurrency exchange, Coincheck, now seen as the biggest cryptocurrency theft ever.
The FSA has already ordered all exchanges in the country to report on their security protocols and their resistance to hacking in response to the theft of Coincheck.
Under the revised Payment Services Act, Japanese exchanges must register with the Financial Services Agency, to acquire a special license to be eligible to operate in the country.
Since September 2017, the FSA has granted licenses for certain crypto exchanges in the country under the new legislation. Others, who had applied for a license but had not been approved, were allowed to continue working temporarily.