Japanese cryptocurrency trading gains a unified self-regulatory body next month, as the industry seeks to rebuild public trust weakened by a half-a-billion-dollar theft.
Two trade groups representing 16 registered crypto market operators agreed Thursday to form a new organization, as yet unnamed, that will work with Japan’s Financial Services Agency to establish investor safety standards. It will also set guidelines for initial coin offerings, a controversial fundraising method in which virtual tokens are sold to investors.
The body will be open to both registered operators and those running exchanges on a provisional basis while awaiting FSA approval. Like the Japan Securities Dealers Association, it will have the power to enforce compliance among its members.
Write: Sara Bauer