The two cryptocurrency associations in Japan, the Japan Blockchain Association and the Japan Cryptocurrency Business Association, have made the decision to join forces in order to re-install trust in the market and speed up self-imposed rules. Once the merger is approved by the Japanese financial regulator, the new organization will have the power to dole out penalties for breaches of self-regulation.
After one of the country’s most prominent exchanges, Coincheck, was hacked, resulting in 58 billion yen worth of the crypto NEM being stolen, the two exchanges started discussing the possibility of merging. Forbes Japan recently reported that they, “are hurried to restore trust in the industry.”
In light of the many other crypto attacks that have happened recently, combining forces makes sense. The goal of this merger will be to establish a new self-regulating organization with a focus on compensation of customer assets and safety management systems.
The new organization will also be studying the reliability of digital currency exchanges that have already been approved by the Japanese Financial Services Agency. Right now there are 16 exchanges that are approved and 16 that are under review. Japan’s revisions to its payment services law that went into effect back in April of last year allow digital currency operators to form a self-regulatory group. They are now allowed to establish industry rules, investigate members and decide punishments accordingly.
Scheduled to launch on April 1, the organization’s chairman will probably be JCBA Chairman Taizen Okuyama, president of Money Partners Group, according to a local news outlet.
To establish this new entity, the FSA will first have to give its approval. As soon as the new organization is approved by the agency, it can get to work on establishing penalties for breaches of its self-imposed rules.