A few of cryptocurrency exchanges in Japan have gathered to form an industry association that is focused on restoring public trust by applying self-regulation and tighter security.
According to a report from Japanese news outlet Asahi Shimbun, sixteen exchanges are currently listed with Japan’s financial regulator, the Financial Services Agency (FSA). These exchanges have established the Japanese Cryptocurrency Exchange Association that is bent on increasing customer protection and internal control procedures. A few exchanges that are part of the association include SBI Virtual Currency, bitFlyer, and GMO Coin.
The report stated that the president of Money Partners Co, Taizen Okuyama, who is to attend as chair, said that the purpose of this organization was to dismiss customers’ concerns and reach the complete development of the market.
“We will firmly take measures for (computer) security and in-house management. We will also immediately coordinate trading rules and decide on what advertisement content is appropriate and what information we should disclose,” added Okuyama.
The establishment of the association comes after the hack at Tokyo-founded exchange Coincheck, in late January, in which the company lost $530 million worth of XEM, NEM Platform’s token. As one of the 16 exchanges that not yet received registration with the FSA, but was allowed to operate awaiting approval, as firmer rules for exchange operations have been introduced.
Earlier this month, it was confirmed that Coincheck was bought by Japanese online brokerage Monex Group in a shot at restoring public trust.
“As financial service operators, we will increase our awareness. We will aim to take security measures that are stricter than before,” added Yuzo Kano, president of bitFlyer Inc. and a vice chairman of the association.
“We want to create circumstances in which we can give to deemed exchanges. The development of our entire industry is important,” added Okuyama.
The organization is preparing to grow into a self-regulated establishment that is backed up by law. It will develop rules for members which concern client protection and in-house managing. It will also set penalties against businesses that destroy public trust in the industry.