16 cryptocurrency exchanges in Japan are looking to set up a self-regulatory body, in order to allay fears and uncertainty following the Coincheck hack earlier this year.
Following the massive Coincheck cryptocurrency theft in January this year, 16 Japanese crypto exchanges registered with the government are planning to form a self-regulatory body, to revive trust and inject a sense of order in the unregulated crypto market.
As per a report by Reuters, the exchanges released a statement on Friday, confirming that the body will also be open to other crypto exchanges, including those who plan to apply for registration with the government, and those whose registration applications are currently pending.
The development comes after a plan to form a regulatory body by merging the Japan Cryptocurrency Business Association and Japan Blockchain Association was shelved earlier this year.
Meanwhile, details on the self-regulatory organization being set up by the sixteen exchanges remain unclear – the body’s name, its scope, and its registration status with the government are still unannounced, although sources claim the organization will be established by spring this year.
Last year, Japan was among the first countries to take note of cryptocurrency exchange operations in order to protect investors and traders, along with preventing the illegal use of digital currencies. However, the recent Coincheck hack, which resulted in losses of over $500 million, brought Japan’s regulatory setup under increased scrutiny, prompting authorities to take stricter measures to ensure a safe environment for digital currency trading.
While most countries have adopted a wary approach towards digital currencies, This means the digital currency will be considered good to pay public and private debts, and will act as ‘real money’, like other national fiat currencies such as USD.
With increasing exposure and the benefits of blockchain technology attracting more attention, other countries may also start pushing towards adoption – in order to do so, regulatory frameworks will be paramount.