Can JVEC be a self-regulatory body for Bitcoin?

August 05, 2018

Japan has declared that they have now decided to pursue their right to be self-dependent on monitoring its bitcoin. With such a decision, they have asserted their liberty to enforce rules on its crypto currency exchanges. For this move, the Japan Virtual Currency Exchange Association has sought assistance with the national department that controls Japan’s financial activities.

The Japan Virtual Currency Exchange (JVCE) has officially made an announcement on Friday that they have registered with the leading financial regulatory body of Japan. In this way, the Bitcoin will achieve a validation and a recognized status countrywide.

At present, JVCE consists of 16 Cryptocurrency exchanges that are approved and certified by the government. This give them a permit to operate the bitcoin as a mode of payment on an accredited level.

JVEC put forth its aims and objectives:

The reason why this association wants to become a body that is dependent on its own to makes its own monitoring rules and regulations is intensive. By becoming a government approved association that strives for fund settlement they will have an autonomy to govern by their own rules.

JVCE announces that with this move they will be able to further their prime objectives and goals. They include:

The members of JVCE will be given best direction and advises to act in accordance with the rules and laws that surround the association newly sought liberty of self-regulation.

By becoming a self-regulatory body, the association strives to play its active part. They want to contribute in the enhancement and growth of industry of Cryptocurrency exchanges which uses Bitcoin as a mode of payment.

Along with these two motives, the association also strives to safeguard the interest of other members rather than solely furthering their self-vested interests.

A review that can be month or two long:

The To-o Nippo Press also has put forth the noticeable fact regarding the self-regulation of JVEC. They assert that it might take 1 to 2 months for the Japan’s financial Service Agency to examine the association and pass the review. They want to examine and investigate the undertakings or dealings of the association. On the basis of that they can only decide whether a proper management system can be anticipated from the association.

Why JVEC came in to being:

The reason why JVEC was established in the first place was because of the hacking of the Coincheck in January 2018. As a result, 58 billion yen worth cryto currency was embezzled. Therefore the aim of this association is to prevent such incidents in future by safeguarding the public trust in the crypto currency industry.

JVEC not the only one:

JVCE has its two predecessors; JBA and JBCA. Majority of the crypto exchanges in Japan are either member of one or both of these associations.

Let’s have a look at what the self-regulatory rules are acquiesced by JVEC:

They have restricted the listing of privacy coin and imposed a permanent halt to insider trading

A margin limit of 4 times leverage and a trading cap for customers.

As the Jiji press quoted the association’s rules, FSA comes to an conclusion. They claim that JVEC can be flexible in developing its technologies with innovation and safeguard customer’s interests. in response the association wrote that will be very accommodating with those traders who are approved as virtual currency exchange and also with those who support the association’s aims.

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