January 7, 2019

Five Cryptocurrency Exchanges Join the JVCEA to Protect Investors in the Industry

The Japan Virtual Currency Exchange Association (JVCEA), a self-regulatory body focused on promoting best practices in the Japanese cryptospace, has announced on January 4, 2018, that five new companies have obtained type II membership.

The JVCEA Waxing Stronger

The JVCEA is a self-regulatory agency set up in June 2018 and approved by Japan’s Financial Services Agency (FSA) after the massive hack that gifted fraudsters over $500 million worth of NEM tokens on the cryptocurrency exchange, Coincheck early last year.

Initially, the body was made up of only 16 registered cryptocurrency exchanges. However, with the latest approval of Coin Check Co. Ltd., LastRoots Inc., Coinage Corporation, Everyone’s BTC Co. Ltd., and LVC Corporation, the JVCEA now has a total of 21 exchanges under its purview.

Each of the cryptocurrency trading venues has registered as type II members which the JVCEA only accepts at the moment.

For the uninitiated, type II members are business applicants who want to register a virtual exchange but have not yet received a go-ahead from the FSA to enable them to begin operating in the country.

Going forward, there are expectations that type III members will be approved in the near future and these are classified as companies that deal with digital assets services such as crypto wallets.

Protecting Consumers and Investors in the Crypto Industry

As a member of the JVCEA, a company will have to adhere to a set of guidelines which are targeted at protecting consumers and investors. Specifically, firms must desist from engaging in any type of insider trading.

The financial watchdog has the power to make regulations and sanction defaulters as part of its duties of establishing a robust cryptocurrency ecosystem devoid of risks.

Despite experiencing a series of catastrophic situations in its virtual currency space in recent times, Japan remains determined to be a pacesetter in the global cryptocurrency industry.

With a significant number of merchants now accepting BTC and other cryptoassets in the region, Japan has created an environment for cryptocurrencies to thrive and make way for investor interest.

As reported by BTCManager in December 2019, the FSA revealed that a total of 190 firms had shown interest in launching crypto-related businesses in the state, a significant increment from the 160 requests it received earlier in August.

In related news, on December 29, 2018, BTCManager informed that Japan’s largest lender, Mizuho Financial Group, was looking to launch a yen-backed cryptocurrency in March 2019.

Category: Altcoins, Bitcoin, Blockchain, Business, Exchange, News, Regulation

Tags: altcoin news, bitcoin news, cryptocurrency, exchange, japan, JVCEA, Regulations

Published at Mon, 07 Jan 2019 21:00:17 +0000

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July 23, 2017

South African Reserve Bank Planning to Test Cryptocurrrency Regulations

The South African Reserve Bank(SARB), has officially announced its plans to experiment with cryptocurrency and bitcoin regulations.

Adopting Digital Currencies

Back in February 2017, the South African Reserve Bank discussed the possibility of issuing a digital currency based on the blockchain technology. The SARB was actively observing countries that had issued their own digital currency. To date, Tunisia was the only country that had officially launched a digital currency based on blockchain technology, the eDinar.

The SARB believes that a national cryptocurrency could greatly benefit South Africa, as its usage would strongly speed up transactions and lower fees. Tim Masela, head of the National Payments System at the SARB, stated:

If we go the route of issuing a digital currency, the objective would be to take advantage of emerging technologies so that we reap the benefits,[…]We foresee that these benefits could be realised, which would be good for the transacting public. But of course, the risks have to be borne in mind as well and that’s what we want to balance.

Experimenting With Regulation

According to a recent report, the central bank decided to plan an initial trial for regulations tests for blockchain and cryptocurrency services. On July 19, Bankymoon, a blockchain solutions provider, announced that it was in talks with the South African Reserve Bank for a regulation test. Loerien Gamaroff, CEO of Bankkymoon noted following regarding the sandbox trial:

All we are doing at this point is seeing how far this relationship will go on within this sandbox,

He also added:

This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies,

Playing the Blockchain Game

The SARB might not be the only bank that is currently experimenting with blockchain technology. In a recent report, the state bank of Belarus announced that it deployed an information network that is based on blockchain technology. The network was deployed in order to make registration of bank guarantees and their issuance easier and faster for banks.

What are your thoughts on this blockchain regulation trial by the SARB? Do you think that it will benefit the South African cryptocurrency market? Let us know in the comments below!

Images courtesy of Pixabay, Mail & Guardian

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