16 cryptocurrency exchanges in Japan are joining hands to help come up with guidelines that will restore customer confidence. This include guidelines for ICOs and trading.
16 licensed Japanese cryptocurrency exchanges have launched a self-regulatory body that seeks to restore confidence in the market after the $530 million Coincheck theft in January.
The ‘Japanese Cryptocurrency Exchange Association,’ as the body is called, will develop standards for the industry, then create guidelines for ICOs in the country, in association with the Financial Services Agency (FSA).
It is an association of the two major cryptocurrency trade bodies in Japan, namely Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA).
The association will also start working on a framework comprising of rules for customer protection, internal controls and compliance. Members will need to adhere to guidelines or face penalties. Fines will also apply where members are in conduct that undermines public confidence and trust. This will include rules of transactions and advertisements and the information they disclose to third parties. Their working together will help eliminate customers’ concerns and restore confidence in the markets.
The group will also provide guidelines and advice for cryptocurrencies working without license.
The currency exchanges under the new body are registered under FSA. They include Money Partners, QUOINE, bitFlyer, Bit Bank, SBI Virtual Currency, GMO Coin, Bit Trade, BTC Box, BitPoint Japan, DMM Bitcoin, Bit Argo Exchange Tokyo, Bitgate, BITOCEAN, Fiscalo Currency Exchange, Xtheta and Tech BURO.
The chairman of the new group is president and CEO of Money Partners Taizen Okuyama. Therefore, the company acquired Coincheck for $33.5 million this month.
There were previous reports that the two main trade bodies would come together. Japan is lauded as one of the few countries to have a working cryptocurrency regulations. However, that puts into consideration customer protection while regulating the exchanges.