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Japan Reveals Expectations for Cryptocurrency Industry Self-Regulation

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In an exclusive interview with news.Bitcoin.com, Japan’s top financial regulator revealed its expectations for the self-regulation of cryptocurrency exchanges in Japan. The agency has approved a self-regulatory organization, which it is working closely with to ensure compliance. All 16 regulated crypto exchanges in Japan are members of this self-regulatory organization.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Working Together

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe Japan Financial Services Agency (JFSA), the country’s top financial regulator, granted the Japan Virtual Currency Exchange Association (Jvcea) self-regulatory organization (SRO) status under the Payment Services Act in October.

The JFSA explained to news.Bitcoin.com that it believes “the SRO can take actions flexibly to keep up with the fast-changing environment surrounding crypto-assets,” adding:

We think it necessary [for us] to work with the Jvcea closely so that the association can successfully perform self-regulatory functions through the establishment and application of self-regulatory rules and monitoring of their members.

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe association is expected to cooperate with the JFSA to instruct and supervise its members to “operate their businesses appropriately.” It is also expected work with them “to improve the safety of related systems through investigation and research on security” and disseminate “information externally to increase the awareness of exchange users,” the agency described.

Furthermore, the association is expected to “set out detailed wallet management processes from the system security point of view and the cross-sectoral rules in areas that are not covered by the laws/regulations, for example, margin trading, for the users’ protection,” Japan’s top financial regulator noted, elaborating:

We expect that through self-regulation, clearer and more detailed rules will be provided as to provisions that are not specified under the existing laws/regulations, as well as self-discipline in areas that are not covered by the laws and regulations.

Adhering to Self-Regulatory Rules

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationAll of Japan’s 16 registered cryptocurrency exchanges are members of the Jvcea. Initially, only registered exchanges could join the association. However, after it was granted SRO status, the association opened up membership to other cryptocurrency operators. According to local media, deemed dealers, which are companies that have been allowed to operate while their applications are being reviewed by the JFSA, can also join the association.

Japan Reveals Expectations for Cryptocurrency Industry Self-RegulationThe JFSA confirmed to news.Bitcoin.com that “It is not a legal obligation for virtual currency exchange service providers to be a member” of a self-regulatory organization. “However, from the perspective of user protection, the JFSA monitors whether virtual currency exchange service providers conduct their businesses appropriately, taking self-regulatory rules into account.” In other words, crypto exchanges are expected to uphold self-regulatory standards even if they are not members of the Jvcea.

The agency revealed that it “works closely with the association by exchanging views about various issues on a regular basis and sharing information on members, unregistered business providers and user complaints,” emphasizing:

In cooperation with the Jvcea, the JFSA has been monitoring virtual currency exchange service providers as to their compliance with self-regulation as well as the laws and regulations.

In terms of whether the JFSA will approve another self-regulatory organization, the agency noted that “There is no limit to the number of SROs under the laws/regulations.” The regulator added, “In the event that another SRO submits an application for approval, the JFSA will scrutinize it from the viewpoint of the applicant’s effectiveness in performing self-regulatory functions.”

What do you think of Japan’s approach to self-regulation for the crypto industry? Let us know in the comments section below.


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The post Japan Reveals Expectations for Cryptocurrency Industry Self-Regulation appeared first on Bitcoin News.

The Daily: Belgium Blacklists More Crypto Platforms, UAE Prepares ICO Regulations

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In this edition of The Daily, Belgium’s financial regulator has expanded its list of fraudulent platforms offering cryptocurrency investments, while UAE has announced it’s working on new ICO regulations. We also look at the plans for a common digital currency in the Eurasian Economic Union and Abkhazia’s intentions to regulate its growing crypto mining industry.

Also read: Bitcoin Posts Record Volume, Ledger Plans Major Update

Belgian Financial Watchdog Issues New Scam Warning

The Daily: Belgium Blacklists More Crypto Platforms, UAE Prepares ICO RegulationsBelgium’s Financial Services and Markets Authority (FSMA) has updated its list of companies suspected of operating fraudulent cryptocurrency investment schemes. The regulator has recently added 14 new websites offering crypto asset trading and other services, bringing the total of reported online scams to 113.

In a new message to investors, the financial watchdog noted that despite its earlier warnings, it continues to receive new complaints from consumers who have invested in digital assets through the blacklisted businesses. “Hence, the FSMA repeats its warning against the fraudsters behind those platforms who are using cryptocurrencies to swindle consumers,” the agency said.

The regulator emphasized that most of these platforms are based on the same principles. They usually claim to offer secure, easy and lucrative investment opportunities and expertise in the management of these investments. Clients are often told their funds are guaranteed and can be withdrawn at any time. In reality, however, they inevitably find themselves unable to recover the money.

UAE to Register and License Crypto Companies

The United Arab Emirates’ Securities and Commodities Authority (SCA) is gearing up to introduce regulations for initial coin offerings (ICOs) in the first half of 2019. The decision to establish a dedicated regulatory framework for digital token sales is aimed at providing startups in UAE with the option to raise capital through crowdfunding, local news outlet The National reported.

According to the publication, the SCA has already recognized tokens issued in coin offerings as securities and will work with the Abu Dhabi Securities Exchange and Dubai Financial Market to develop trading platforms for ICOs next year. The watchdog’s chief executive, Obaid Al Zaabi, detailed:

We have signed agreements with law firms to come up with a sandbox and rule books for ICOs. The legal requirements will be completed by the end of the first half of 2019.

Al Zaabi added that after the introduction of the new regulations, UAE authorities will work with local exchanges on the implementation of relevant technologies and the development of the necessary infrastructure. He also stressed that the country will remain open to foreign investments in the industry, providing registration and licensing to crypto companies from around the world.

EAEU Plans to Issue Digital Coin by 2021

The Daily: Belgium Blacklists More Crypto Platforms, UAE Prepares ICO RegulationsThe Eurasian Economic Union (EAEU) is likely to introduce a common digital currency within the next two or three years, according to comments made by Russia’s deputy finance minister Alexei Moiseev. The coin will be similar to the European Currency Unit (ECU), which was used in the European Economic Community and later in the European Union between 1979 and 1998.

Moiseev added that not only EAEU members – Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia – but also the union’s partners have shown interest in adopting a common digital currency in their trade and economic relations. He also said that a group of experts is already working to develop the idea.

“Inevitably, we have to move in that direction because of the mounting difficulties with accounting. The number of organizations placed under sanctions is also growing. We must respond by creating reliable international payment systems that are not tied to the U.S. dollar,” the Russian official stated, as quoted by Tass.

Abkhazia Mulls Mining Regulations

The Daily: Belgium Blacklists More Crypto Platforms, UAE Prepares ICO RegulationsThe Republic of Abkhazia, a partially recognized entity in northwestern Georgia, is planning to adopt regulations for its growing cryptocurrency mining industry. Its president Raul Khajimba recently scheduled a meeting with members of the territory’s government to discuss the drafting of a law dedicated to placing the mining sector under supervision.

The announcement comes after the head of the state-run energy company Chernomorenergo, Aslan Basaria, complained that mining farms set up in abandoned Soviet factories put additional stress on the country’s electrical grid which is already loaded to full capacity. “If temperatures fall, there is a risk that electricity will not reach regular customers,” Basaria warned, quoted by regional media.

According to Eurasianet, Abkhazia is emerging as a crypto mining destination much like neighboring Georgia, the country it broke away from in the early 1990s. Both share a large hydropower complex located on the de facto border, which satisfies most of Abkhazia’s electricity needs. In recent years, Georgia has become a regional leader in crypto mining as it offers miners some of the lowest operating costs in the world.


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The post The Daily: Belgium Blacklists More Crypto Platforms, UAE Prepares ICO Regulations appeared first on Bitcoin News.