The Japan Virtual Currency Exchange Association (Jvcea) has applied for certification with the Financial Services Agency (FSA). FSA is Japan’s top financial regulator.
Jvcea is looking to become a “certified fund settlement business association,” which means that it would be the authority for self-regulation. It would allow it to enforce rules on the members of its cryptocurrency exchange.
The main objectives would be to provide “guidance and recommendations to members to comply with regulations, laws and self-regulation rules,”. Jvcea also wants to help with “the sound development of the virtual currency exchange industry and the protection of the interests of users.”.
“The Financial Services Agency will carefully examine the affairs of the association and carefully investigate whether proper group management can be expected. It will take 1 to 2 months for the review.”
“If it [the Jvcea] is approved as a self-regulating organization, it will be possible to enforce disposition and investigation of member exchanges, expulsion of membership…in a mandatory manner.”
Jvcea has drafted a self-regulation with restrictions on the way cryptocurrency exchanges operate. A margin limit of 4x leverage, trading restrictions for minors and the elderly, trading caps for all clients, a ban on insider trading and a restriction on privacy coin listings, are all listed.