All sixteen of Japan’s government-approved digital currency exchanges announced Friday that they will be creating an industry organization focused on self-regulation. The move is designed to restore trust in the industry as new concerns have been raised about digital asset security in the wake of the high-profile loss of more than $530 million of cryptocurrency from the Coincheck exchange in January.
In their Friday statement, the exchanges said that the new organization will work to establish industry standards and rules for everything from insider trading to advertising. According to reporting from Kyodo News, the new association will also try to gain government recognition as an approved regulatory body. That recognition would provide the organization with the power it needs to sanction exchanges that violate its rules.
The President of Money Partners Group Co., Taizen Okuyama, will reportedly lead the new organization once it is formed. He told reporters at a Tokyo press conference that the exchanges would need roughly a month to create the organization.
Membership will initially consist of the sixteen government-registered exchanges, but those charter members intend to invite other exchanges to join after the group launches. Invitations will eventually be extended to digital currency exchanges that have pending applications before the government, and others that may register in the coming months and years.