Japan’s Virtual Currency Exchange Association or (JVCEA) has announced the framework for its new voluntary rules regarding cryptocurrencies. Industry observers see the original Japanese cryptocurrency rules as a template for future regulation in Japan.
One of the new guidelines is a prohibition on “insider trading.” This is directed towards those employees of exchanges that have access to exchange data and could front run.
The JVCEA will also require its members to be compliant with standard AML and KYC practices. Coins that offer anonymity will be prohibited.
There are currently 16 exchanges that have joined the JVCEA. Japan’s Virtual Currency Exchange Association is a Self-regulatory Organization, and its membership is entirely voluntary. The SRO is starting at a critical moment after the recent exchange hack of Coincheck where over $500 Million was stolen.
Japan’s approach to cryptocurrency regulation looks far more progressive than the recent ban on cryptocurrencies by Chinese regulators. Japan could establish itself as the global leader in a place where it is desperately needed.