Japanese Crypto Self-Regulatory Body to Vote on New Rules for Industry

 

 

 

Japan’s cryptocurrency self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA), has agreed to a set of new regulations for the industry, according to a report from Nikkei Asian Review. The association plans to hold a vote on its proposed rules on June 27. The rules are designed to ban insider trading and prevent trades involving cryptocurrencies that are designed to be difficult to track.

The JVCEA has sought official recognition from Japan’s Financial Services Agency and has signaled its intent to adopt the self-policing industry measures once that recognition is obtained.

The effort to curtail insider training is designed to prevent exchanges from engaging in activities that might impact the markets in a manipulative manner. Some observers have suggested that market manipulation may have been a key factor in the rapid price increase of major coins like Bitcoin.

Exchanges would also be barred from supporting coins that could be useful vehicles for money laundering:

“The association also wants to prohibit exchanges from accepting new currencies that cannot be traced to previous sellers, since such currencies could easily be used for money laundering and are hard to monitor. Highly anonymous coins like Monero, Dash and GCash could be forced out of the mainstream.”

In addition, the rules would require that exchanges implement better security for customers funds, including offline management of private keys. They would also be required to “introduce circuit breakers to halt trading should a currency's value suddenly surge or plunge.”

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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