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.