A group of Japanese cryptocurrency exchanges has formally applied to the Financial Services Agency (FSA) with a proposal to form a self-regulatory organization, CoinDesk reports.
The Japan Virtual Currency Exchanges Association (JVCEA) was formed by 16 stock exchanges in March and registered with the FSA in April. Now it intends to obtain the status of a “certified business association in the field of financial accounting”. This will allow JVCEA to establish self-regulation rules for the local cryptocurrency industry and develop stricter rules for all participants in the process.
The FSA certification process will last about two months. On their length, the Association’s affairs will be studied and investigated, which provided a 100-page document with the proposed control measures.
The working version of the statement includes proposals for regular audits, a ban on trade in certain anonymous cryptocurrencies such as Monero and Dash, and others, the Nikkei Asia reported last month.
Even before that, JVCEA announced that it wants to set limits on the amount of borrowed capital for margin trading in cryptocurrencies, thus preventing traders from taking their leverage, which is more than 4 times larger than their own deposit.
These measures are aimed at preventing incidents similar to what happened on the Coincheck exchange, with which more than $500 million was stolen in January of this year in the cryptocurrency.
The group’s activities are consistent with the policy of the financial regulator FSA, which after the incident at Coincheck began to closely monitor the activity on local exchanges of cryptocurrencies and issued several resolutions requiring the improvement of certain aspects of their business.