Japanese Exchanges to Form Self-Regulatory Organization

The Japan Virtual Currency Exchanges Association (JVCEA) was formed by 16 crypto exchanges in March
07 August 2018   1059

A group of Japanese 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 crypto 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 more stringent standards.

The working version of the statement includes about 100 pages with proposals for regular audits, a ban on trading certain anonymous cryptocurrencies such as Monero and Dash, and others.

Even before that, JVCEA announced that it wants to set limits on the amount of borrowed capital for margin trading in crypto-currencies, 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 crypto currency.

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.

New York State to Revise BitLicense Granting Terms

At the moment, BitLicense is the most stringent legal framework for the cryptocurrency industry
23 October 2019   5

The terms for granting the so-called BitLicense, the license required for cryptocurrency companies to work in New York State, will be reviewed. This was stated by the superintendent of the New York Department of Financial Services (NYDFS) Linda Lacewell, reports CoinDesk.

BitLicense is considered the most stringent legal framework for the cryptocurrency industry at the state level. In particular, companies are required to receive it for cryptocurrency transactions of New Yorkers, even if they themselves are based in other jurisdictions.

Last year, Kraken, a San Francisco-based exchange, chose not to receive BitLicense, but to completely leave New York. Earlier this year, the Bittrex exchange (Seattle) also left the state without licensing.

This is a good time to take a look, a responsible look and see how our regime is fitting the current market and … what if any adjustments should we think about making to continue to adapt to sort of a changing industry … that’s going to be one of the things that [we do].
 

Linda Lacewell

Superintendent, New York Department of Financial Services

At the same time, she called not to “be too happy” about possible changes in the rules for the cryptocurrency industry.

According to her, the current regulatory regime “works well,” but the industry has changed since 2015, when BitLicense was introduced.

How has the industry grown? Has it matured in any way? And I don’t want to get too specific, but you know, it’s a good time for a second look.
 

Linda Lacewell

Superintendent, New York Department of Financial Services

 Lacewell did not specify when the revision of licensing terms will be completed and what exactly industry participants can expect in the end.

Since the introduction of the license until June 2018, only 6 companies have received BitLicense, but over the past 20 months, after the regulator has softened its position, 16 more companies have been added to their number.