Recently, two cryptocurrency regulatory organizations have just been accredited as financial instruments and exchange associations by Japan’s economic watchdog.
The Japan virtual currency exchange business association (JVCEA) and The Japan STO association, according to a report released on the 30th of April 2020 have been recognized by the financial services agency of Japan. They are being known as self – regulatory groups for derivative transactions and offerings of token and security for crypto assets. As from the 1st of May 2020, the JVCEA will be renamed, the “Japan Crypto Asset Trading Business Association.”
JVCEA accredits crypto regulatory organizations
JVCEA is the official self-regulatory body for the cryptocurrency industry in Japan approved to establish rules and policies for cryptocurrency exchanges in Japan. One of their major function is to accredit and approve cryptocurrency regulatory organizations.
The Japan Crypto Asset Trading Business Association was reached out to by Cointelegraph for feedback. However, as of during press time, there was no feedback.
Japanese cryptocurrency regulatory organizations
There are 21 authorized and approved exchanges in Japan, and three additional firms are listed as second-class participants; this according to the recent crypto developments in Japan as of March 2020. These are big American crypto exchanges, including digital asset markets, Coinbase, and Tokyo hash.
The leverage cap for cryptocurrency margin trading in January of 2020 was proposed to be officially cut by the financial service agency. The Financial Service Agency allegedly intended to bring the regulation into effect in April after the amended edition of the Financial Instruments and Trade Act comes into force.
It is important to note that some cryptocurrency exchanges in the country reduced their rates after the Japan Crypto Asset Trading Business Association enacted a leverage cap of four times in 2019.
In other jurisdictions such as the European Union, some local economic experts suggested that the rate should be further lowered to two times. In light of these events, it is expected that more cryptocurrency regulatory organizations will be set up and approved by the FSA.