Japanese Authorities Allow Crypto Industry To Self-Regulate
The Financial Services Agency of Japan (FSA) announced the crypto industry a structure with its own regulation, Reuters reports.
Thus, the Japanese Virtual Currency Exchange Association is given the opportunity to control and impose sanctions on those trading platforms that act contrary to the established rules.
The FSA concluded that trading platforms needed some freedom in setting their own standards to prevent money laundering, protect clients' crypto assets, and fulfill trading requirements in connection with two major frauds, due to which crypto exchanges lost huge sums.
The FSA official expressed the opinion that it would be easier for specialists to draw up and monitor compliance with regulations in the crypto industry themselves in such a rapidly growing field as digital currencies.
In 2017, Japan became the first state to begin to regulate the crypto trade. Therefore, when the Coincheck crypto exchange was hacked in January for $530 million, followed by an attack on the Tech Bureau's Zaif crypto exchange with a leak of $60 million in September, the crypto community criticized the activity of both digital platforms and Japan’s financial regulator.
Yuri Suzuki, the senior partner of the law firm Atsumi & Sakai, believes that self-government bodies will establish clearer rules that will help to “regain public confidence” in the crypto industry.
As previously reported, Coinbase agreed with the high requirements of the FSA for crypto exchanges when obtaining a license for trading activities in the state.