Interesting news from Japan teach the cryptocurrency market. Some weeks ago, Reuters reported that sixteen Japanese cryptocurrency exchanges were going to create a self-regulatory body. The main intention behind this idea was to better safeguard investors from the lack of a regulatory framework.
Japan Starts its Self-Regulatory Experience
The elf-regulatory body will start working in Japan the next month. After Coincheck’s hack, cryptocurrency exchanges have been working together to self-regulate the cryptocurrency market. The self-regulatory body will work with the Japanese’s financial watchdog, the Financial Services Agency. In this way, the market will have better standards for trader safety.
Of course, after all the problem in South Korea and China with Initial Coin Offerings, they will be regulated as well. According to the report, the organization will start to operate in April. Mr Taizen Okuyama, that will serve as chairman, said that the intention is to bring the cryptocurrency sector to bear on self-regulation.
One of the most important hacks in the cryptocurrency market happened in Japan. The crypto exchange Coincheck has suffered from a hack at the end of January 2018. The hackers stole $530 million dollars’ worth of XEM. After it, the FSA has called for onsite inspection of the crypto exchanges operating in Japan.
It is important to mark that Japan is one of the most active countries in the cryptocurrency world. The Japanese yen is the most traded currency all over the world against cryptocurrencies.
Another problem occurred with Zaif exchange when a bug in the platform allowed investors to purchase Bitcoin for free. The individuals were not able to profit from it, but concerns were raised. Cryptocurrency exchanges in Japan are now being analysed and investigated. More regulations are needed in order to have healthy market.
Self-Regulatory Cryptocurrency Bodies
As the world is moving towards cryptocurrencies, more regulations should legitimize the market. That’s why different bodies are trying to self-regulate the market. For example, in Croatia, a self-regulating body has emerged, and it is known as UBIK. The main intention of this body is to reduce the lack of uncertainty in the cryptocurrency market and legitimize it.
Croatia does not have any regulation at the moment, but this self-regulatory body is trying to open the way to healthier markets. A legal framework will help enterprises from all over the world to have a clear view of how to operate in certain countries.
Furthermore, seven U.S. and European cryptocurrency companies (Coinbase and eToro were present), created a British trade body to establish a code of conduct. The body known as CryptoUK will promote a healthy trading environment and reduce the uncertainty in an unregulated market.
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