The financial services agency of Japan has today given the domestic crypto industry a certificate which is intended to give, them a self-regulatory service. What this, means, in other words, is that the JVCEA also known as the Japanese Virtual Crypto Exchange Association would now have the authority to supervise and the manage space themselves.
Expectation held by the FSA is that this body would decide on what rules to set as regard to issues such as assets which are owned by customers, policies about anti-money laundering as it relates to crypto exchanges and other guidelines which are worth following.
It is believed that the FSA believes that the experts which work in the JVCEA would be most grateful if they are governed by rules which are set rather than being governed by policies which have been set up by a government. Their belief stems from the fact that the industry which they are in is one which has the ability to change over a short period of time.
Their belief stems from the fact that the industry which they are in is one which has the ability to change over a short period of time.
This new policy and the rules and guidelines are expected to be in force from now and this is shown by the fact that most rules and principles are already written on the website of the JVCEA. This new rules which would be set by the watchdogs are to be taken care of by about 15 staff which have already been employed. This number is expected to increase to about 20 in the coming months.
It is worth remembering that the JVCEA was recently founded in April and currently over 16 corporations are duly registered under it. The need for this corporation rose about the hack that robbed a crypto exchange of more than $500 million.
The duties which the JVCEA performs is related to the inspection of the crypto exchanges which are all around Japan and the security levels at which they are right now. They are also going to be involved in the assessment of token and their validity anything there is an initial coin offering.
It can be remembered that Zaif lost over $6 billion in August. This loss led to the JVCEA to make tougher laws which were meant to regulate hot wallets. Limits are also expected to be set on the amount of cryptocurrencies that can be managed online.
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