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Japan Grants ‘Self-Regulation’ Status to Cryptocurrency Industry After Crackdown on Privacy Coin

Japan has become famous for its technology over the few decades; in the form of Sony Electronics, beloved Honda Civic, etc. While the nation is not a start up hub like Silicon Valley (yet), crypto currencies are a whole different ball game for the country. Though Japan isn’t leading in terms of blockchain innovation like Zug, Singapore or Malta, it is at the forefront of adopting existing cryptocurrencies for daily activities. The nation’s largest electronics retailer ‘Mogul’ accepts bitcoin. Japanese internet service giant ‘GMO’ also pays a part of salary to its employees in Bitcoin. Now, the country’s primary financial regulatory body, Financial Services Agency (FSA), has approved the Japan Virtual Currency Exchange Association (JVCEA).

JVCEA consisting of (all) 16 licensed domestic cryptocurrency exchanges is to become a ‘certified fund settlement business association’. This will allow the industry bodies with means to create and execute guidelines for domestic exchanges. This, as per FSA’s reasoning most likely, will allow for better curbing potential anti-money laundering and terrorism financing. This will also provide safeguard to retail and customer assets. This regulatory development is complemented by FSA’s previous ban on services by crypto exchanges of privacy coins like Monero, Zcash, Dash and Augur. Executed together, these laws curtail transactions facilitating nefarious deeds. Lastly, these approvals will also boost confidence in the crypto industry, particularly now with bearish market sentiments and in the light of recent Japanese crypto exchange hacks.

The official report reads:

“With the acquisition of the accreditation, we [FSA] will continue to make further efforts to create an industry that you can trust from everyone who uses virtual currency with members [exchanges].”

The nation of the rising Sun, Japan is leading the world into adoption and daily use of cryptocurrencies. Stay tuned and don’t miss the future. The Future is Now!

 

Comments
2018-11-07 23:07:51 / Miguel Francis-Santiago
"The JFSA has really struggled to regulate the exchanges, as proven by the hacks of MTGOX, CoinCheck and recently ZAIF. So in a sense this SRO is capitulation, and a way for the regulators to cover their own asses. That way if there are failures, they can blame the SRO and not themselves. This is really a symptom of a failure of the regulatory regime in Japan. The failure is both in regulatory processes but most significantly in the reliance of Japan's institutional investors on the liquidity provided by centralized exchanges. This addiction has led to the downfall of that once prosperous crypto economy." --- Miko Matsumura
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