The 16 cryptocurrency exchanges presently listed under Japan’s financial watchdog, the Financial Services Agency (FSA), has launched the Japanese Cryptocurrency Exchange Association (JCEA); this according to reports from a Japanese media outlet.
The self-regulatory organization, led by Taizen Okuyama, president and CEO of cryptocurrency exchange Money Partners, expects to restore trust in the nation’s virtual currency, The Asahi Shimbun reports.
During its first meeting, the JCEA (Japanese Cryptocurrency Exchange Association) said that it would try to create extensive standards with respect to client security and inside regulatory controls. Members of the organization will be required to consent to these tenets, as the group also expects to hand down punishments for activities that undermine the trust and confidence necessary in their line of work.
Okuyama said they he will “ensure that safety efforts and inward controls are set up. “We need to kill clients’ worries and work to restore open trust keeping in mind the end goal to build up a solid market.”
The underlying aim behind the launch of the association was as a result of a March meeting between the Japan Blockchain Association and the Japan Cryptocurrency Business Association that called for the formation of a joint body that will work with the FSA on setting up standards for the cryptocurrency industry.
The recent maneuvers come at the backdrop of the Coincheck hack back in January 2018 in which customers lost 58 billion yen (about $533 million) in virtual currency NEM.
The FSA is now leading intensive probes into cryptocurrency platforms in the country and towards this end it has issued a flood of reformatory measures aimed at exchanges whose activities were regarded as unacceptable.
Speaking recently, Okuyama has said that the JCEA intends to offer assistance and advice on how to improve cryptocurrency exchanges that are still working without full authorization from the FSA. The association plans to ask the unlisted trading platforms to join the JCEA to help usher in cross-industry development.
“I would like to create a situation where I can give advice to (unlicensed exchanges), the development of the industry as a whole is important,” Okuyama said.
Yuzo Kano, leader of bitFlyer Inc., and a vice chair of the JCEA, portrayed the association’s goals: “As financial service operators, we will increase our awareness. We will aim to take security measures that are stricter than before.”
The Coincheck hack uncovered various imperfections in Japan’s cryptocurrency network. However, rather than the government adopting a stricter strategy, as has happened in neighboring China, the formation of the JCEA mirrors a more proactive and valuable approach to building up the industry in the face of difficult challenges.