Japan’s Financial Services Agency has authorized cryptocurrency industry to make rules and regulations by themselves so as to help the market succeed.
The authorisation was made public by the financial agency on Wednesday, Oct 24th this year.
As result of this approval, Japan Virtual Currency Association, which is the conglomeration of registered digital currency exchanges, now has the mandate and government’s backing to make laws, set operational standards, and protect consumer’s interest and also to prevent theft and money laundering.
The financial association now has the authority to ensure that all and sundries comply with their rules and regulations. In a way to make sure the growth of Virtual currency trading, Japan became the first country to regulate the trading platform in 2017.
Self-Regulation on Cryptocurrency to Help Regain Public Trust after Major Setbacks
Despite being the first country to regulate their Virtual currency trading platforms, Japan recorded two major digital currency robberies in the early part of this year and that has definitely cast doubt over the credibility of the market.
With the latest self-regulation given to the JVCEA, there is great believe that crypto-market is on the verge of regaining public trust.
A senior Financial Services Agency officer (who failed to disclose his identity) told Reuters that Virtual currency industry is a fast-growing market which is ready to make an amendment to its past flaws.
He said this self-regulation will help the market make timely decisions and laws to protect the growth of the market.
More Rules to Safeguard the Industry
With self-regulation, the body will be able to make more strict rules and regulations to help secure the market.
Yuri Suzuki, the senior partner at law firm Atsumi & Sakai, claimed that the body would be able to make tougher rules compare to the ones in existence so as to help the industry grow into prominent in the business world.