Blink, and readers would be excused for missing what might turn out to be a foundational piece of regulation for Japan. Its Financial Services Agency (FSA) released a bulletin under the title, “About certification of certified fund settlement company association.” In it, the FSA essentially provided regulatory room for the land of the rising run to allow its nascent crypto industry to self-regulate.
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FSA of Japan Makes Room for Crypto Self-Regulation
“Based on Article 87 of the Act on Financial Settlement (Act No. 59 of 2009), the Financial Services Agency has certified the following organizations as an Association of Certified Fund Settlement Business Operators,” a handy google translation provided.
“The Japan virtual currency exchange Dealers Association,” the post disclosed, appears to be the organization’s title, though it’s tweaked slightly later in the post to, “Organization Name: Japan Virtual Currency Exchange Industry Association.”
It will have over a dozen contractors in its initial association. Its President was named as Tateyasu Okuyama. The agency will be located in Chiyoda Ward, Ichibancho, Tokyo. The press release asks, “Please refer to the association’s website for the articles of association and self-regulation rules of the Japan Virtual Currency Exchange Association. (Japanese Virtual Currency Exchange Association website: https://jvcea.or.jp ).”
Industry Better at Rule-Making than Bureaucrats
The FSA document appears to allow industry to set standards, rules by which customer investments are guarded and kept far from blackhat hackers. It remains to be seen, but some of policy language also suggests industry leaders can determine proper procedures concerning communication with law enforcement, and even money laundering guidelines.
Reuters reported a senior FSA official as explaining, ““It’s a very fast moving industry. It’s better for experts to make rules in a timely manner than bureaucrats do.” Indeed, the country has had a fairly live-and-let-live policy toward crypto when placed against other countries in the region. However, it has been rocked by two giant hacks this year, which have brought calls for tighter government control.
At the beginning of 2018, Coincheck was ‘got’ for over half a billion dollars by hackers. Just last month, Tech Bureau Corp fessed up to losses in the tens of millions — some say as high as $60 million. This was after the FSA had issued orders for better practices directly to Tech Bureau.
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