As per the official proclamation by the Japan Virtual Currency Exchange Association (JVCEA) on January 4, five more cryptocurrency exchanges have joined the JVCEA.
Set up on April 2018 in the wake of a hacking attack on the Japanese crypto exchange Coincheck which caused a massive $534 million assets to be stolen, The Japan Virtual Currency Exchange Association (JVCEA) emerged as the regulatory entity for the Japanese cryptocurrency industry.
According to the JVCEA website:
“We aim to ensure the proper implementation of the virtual currency exchange industry and to contribute to the sound development thereof and the protection of the interests of users of the virtual currency exchange industry.”
Recognized by the Japanese Financial Services Agency (FSA), The JVCEA’s jurisdiction lies in passing and enforcing standards for Cryptocurrency exchanges.
In an interview, FSA confirmed that:
“It is not a legal obligation for virtual currency exchange service providers to be a member. However, from the perspective of user protection, the JFSA monitors whether virtual currency exchange service providers conduct their businesses appropriately, taking self-regulatory rules into account”
That above statement means that the Crypto exchanges in Japan have to still conform to the rules and regulations of the FSA even if they are not a member.
Prior to January 4, this association had a total of 16 regulatory cryptocurrency exchanges as per reports.
The original 16 members of JVCEA are as follows-
- Money Partners Inc.
- BitFlyer Corporation
- QUOINE CORPORATION
- Bit Bank Corporation
- SBI Virtual Currencies Corporation
- GMO Coin Co. Ltd
- Bit Trade Co. Ltd
- BTC Box Corporation
- Bit Point Japan Co. Ltd
- DMM Bitcoin Inc.
- Bito Argo Exchange Co. Ltd
- Bitgate Corportation
- BitOcean Co. Ltd
- Fiscal Virtual Currency Exchange Inc.
- Tech Bureau Inc.
- Xtheta Corporation
The five new class II members are Coincheck Ltd., Everybody’s Bitcoin Co. Ltd., Lastroots Inc., Lvc Corp., and Coinage Corp.
According to the JVCEA website, “A Class II member is a business applicant who is applying for virtual currency exchange trader registration prescribed in Article 63-3 of the Fund Settlement Law or a business entity planning to apply”.
Coincheck Ltd., Everybody’s Bitcoin Co. Ltd., and Lastroots Inc. are currently being reviewed by FSA and are allowed to operate in Japan.
Meanwhile, Lvc Corp. and Coinage Corp. are currently restricted from operating in Japan.
After the occurrence of hack attacks on the crypto exchanges in Japan, The JVCEA; backed by FSA is taking a bolder approach in protecting the crypto exchanges and traders from malicious activities.
Wimplo journalist, Sunil said in his blog that “Japan, being a highly tech-savvy nation was one of the forerunners to embrace sophisticated cryptocurrency standards. It also prides itself as a nation bent on bringing well-designed regulations and best crypto experience to its nationals.”
What do you feel about the self-regulatory approach taken by the JVCEA? Let us know in the comments!