Self-Regulating Body For Japan’s Cryptocurrency Exchanges
Finally Japan’s exchanges have formed the self-regulating body. For the purpose of addressing market issues sixteen of Japan’s cryptocurrency exchanges are forming a self-regulating body. The island’s cryptocurrency market is under observation by clients due to two massive breaches that occurred over four years.
In a period of several months Nihon Kasotuka Kokangyo Kyokai (Japanese Cryptocurrency Exchange Association) was officially formed on Monday by exchanges registered with the Financial Services Agency. The chairman of this new endeavor Taizen Okuyama said that its purpose is to maximally reduce customer fears and return forward standards that will help the market successfully development.
He said “We will firmly take measures for 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.”
This step also seems to be stimulated by the desire to guarantee that the FSA exerts the least possible pressure on the ecosystem of the exchange as long as it continues to grow. Trade in cryptocurrencies in Japan exploded in 2017, reaching a total volume of more than $ 630 billion for the fiscal year.
However, various setbacks made traders worry. One of these was the moment when Zaif started distributing a free Bitcoin within 20 minutes due to a failure in its systems. Yuzo Kano, deputy chairman of JCEA, said that this could be countered with stronger cybersecurity practices.
He said, “As financial service operators, we will increase our awareness. We will aim to take security measures that are stricter than before.”
It’s easier said than done. Crypto currency is cunning software engineers in short supply in Japan, which makes the situation terrible when it comes to the threat of yet another major violation.
With the increasing of cryptocurrency they also become attractive targets. The prevention of this will require much greater security, but human resources are still needed to create these measures.