Japan’s Crypto Exchanges aim to Self-Regulate
The concept of self-regulation often might sound like an odd notion, being that the idea of regulation demands an outside element by default. The same element is then tasked with the process of independently observing a system in its everyday workings and then coming up with means of regulating its practices. Yet, 16 Japanese cryptocurrency exchanges organized and formed a self-regulatory organization in the country. The initiative was hastened by the problem of NEM theft that took place in January 2018.
The same heist was one of the biggest ones in the short history of cryptocurrency. In a single incident, the thieves took over $500 million in NEM cryptocurrency. Now, the exchanges, supported by two trade organizations working in Japan will set out to make a regulatory system. The current plan is for that group to complete its standards by April and then presented them to the FSA or Japan’s Financial Service Agency. Behind all of this is the desire of the exchanges to improve their security so that the same situation does not take place once again.
Interestingly, the group also plans to try and set up the framework for ICOs in Japan, which could be a good sign for everyone in the cryptocurrency investment, but especially the ETH traders. If ICOs become popular in Japan, there is a certainty that the price of ethereum will sharply begin to rise. Also, the move could bring in a huge amount of capital to the country if the international investors had a higher level of confidence in Japanese ICOs.
All of this comes after a recent news that Japan’s cryptocurrency domain is exerting effort to develop a Self-Regulatory Organization or an SRO. These rumors have been proven more than correct with this news. Coincheck, the exchange that suffered the $500 million attack was not approved by the FSA, who warned it about its security issues. Now, it looks like Japan’s cryptocurrency exchanges are using initiative to stay ahead of the regulatory wave.