Hi guys, do you know that Japan has given authority to crypto exchanges for self-regulating. If you don’t then no problem. Today I’ll share a brief discussion about it.
Therefore let’s begin.
HERE are the deets.
Japan is among one of the friendly countries for cryptocurrency trading who has permitted cryptographic exchanges to self-regulate through the Japanese Virtual Currency Exchange Association, as reported by Reuters.
The Japan Financial Services Agency (FSA) will transfer supervisory powers to the sector body.
Cryptocurrency exchange management standards have not yet been appointed and Japan has been the scene of several major hacks, starting with Mt.
Gox and more recently Coincheck and Zaif. Problems remain with respect to technology standards and token security.
Trade must be monitored in a number of ways, including the safety of consumer funds and the prevention of money laundering. The professional body should also develop operational guidelines.
“It’s a fast-moving sector, and it’s better if the experts develop rules in a timely fashion by the bureaucrats,” an FSA official told Reuters.
Until recently, the FSA was the regulator of cryptographic exchanges. However, most Japanese markets operate with prior authorization, pending further compliance.
Scholarships are allowed to manipulate cash and have bank access, but in terms of cryptography, traditional financial regulation has little power.
Legal experts consider that the rules of the self-regulatory body are stricter than the financial laws. Nevertheless, there is some doubt that the association can mobilize sufficient staff and expertise to examine each case.
Despite regulation, Japanese stock markets have had ups and downs and volatility similar to other markets.
The FSA has approved 16 exchanges, none after December 2017.
“We are looking at more details than before, and the approval process has become stricter,” said an FSA official.
At one point, Japan was the most fashionable place for Bitcoin trading, with pairs with the Japanese yen accounting for up to 60% of Bitcoin volumes.
Since then, yen trading has declined and the price of Bitcoin is mainly fixed via the Tether (USDT) pair.
So, do you guys find it helpful? Then please let me know.