An association of sixteen licensed domestic cryptocurrency exchanges in Japan have officially applied for certification from the country’s financial regulator to establish a self-regulatory body.
The Japan Virtual Currency Exchange Association (JVCEA), a body made up of all 16 licensed cryptocurrency exchanges, is planning to become a “certified fund settlement business association” following the official submission of an application with the Financial Services Agency (FSA), Japan’s leading financial regulator.
The working group also plans to partner with authorities establish guidelines and legislation to eventually enable the domestic cryptocurrency exchanges sector to regulate itself.
The report states that the FSA certification process will undergo a two-month rigid review in which the authority will “carefully examine the affairs of the Association and investigate whether proper group management can be expected.”
Established in March, the JVCEA was launched as a concentrated effort among licensed exchange operators to protect investors and regain confidence in the sector following the $530 million hack of Tokyo-based exchange Coincheck.
The group is now planning to get certified to improve, stating that its acceptance as a fund settlement business association would help “the sound development of the virtual currency exchange industry and the protection of the interest of users.”