Japan’s financial regulator, the Financial Services Agency (FSA) is reported to have received 190 cryptocurrency license applications from exchanges as 2019 approaches.
This happened after the FSA recently granted the newly formed Japan Virtual Currency Exchange Association (JVCEA) in Japan the power to oversee self-regulation within the cryptocurrency industry.
The JVCEA had already applied to the FSA to become cryptocurrency’s one and only self-regulatory body in the country. It also attempted to stem the tide of transactions earlier this year when it recommended its own “appropriate regulations” for growth by proposing new rules that would affect the way exchanges operate, placing privacy coin listings and insider trading under the regulatory microscope.
Another tool for limiting the transaction surge suggested by JVCEA was to enforce trading caps and restrictions according to age group, i.e. the very old and the very young. The FSA regulator has already released figures showing that in April, there were 142,000 crypto traders in Japan. That monthly figure represents a small percentage of the total of 3 million Japanese traders.
Last month, FSA’s Study Group on Virtual Currency Exchange Industry concluded its tenth meeting. The group classified tokens according to three categories: virtual currencies with no issuers (like Bitcoin), virtual currencies with issuers, and virtual currencies that not only have issuers but also distribute profits.
The country’s top financial regulator Toshihide Endo has suggested that the industry needs to grow under “appropriate regulation” and as such won’t need government intervention to further enforce curbs on how exchanges operate within the country.
The FSA commented last week that:
“We think it necessary 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 is currently the global leader in the market development of cryptocurrencies, although, in terms of public adoption, many Japanese have suggested that the prices of cryptocurrencies must become far more stable in 2019 for people to use them for regular purchases throughout all sectors across the country.
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