The Japan Virtual Currency Exchange Association (JVCEA) announced here on January 4 that it has included Five more cryptocurrency exchanges into its list.
The Japan Virtual Currency Exchange Association is a self-regulatory body that was formed in April. The exchange started with an aim to form a safety standard for the investors, industry-wide. Later in October, the Japan Virtual Currency Exchange Association was officially granted the self-regulatory status, by Japan’s financial regulator, to oversee and manage the crypto sector.
The JVCEA was made post the $534 million hack in January 2018 with the crypto exchange Coincheck. Post-forming in April 2018, the association released various regulatory guidelines in June, to protect both crypto traders and the exchanges. Some of these measures include a prohibition on insider trading, only allowing 4x leverage on margin trading, putting a ban against the trading of privacy-oriented coins, setting a limit on the number of digital assets managed online in wallets owned by exchanges, the termination of the advertising related to crypto’s, promoting or encouraging speculative trading by crypto exchanges in the country. The association was initially started with 16 members on its list.
The five new members of JVCEA are Coincheck, Everyone’s Bitcoin, Lastroots Inc., LVC Corporation, and Coinage Corporation. They have been categorized as ‘Type II’ entrants. The inclusion of these five crypto exchanges is exceptional in its sense, which means that up until now, the other 16 members of JVCEA were all regulated crypto exchanges. These five exchanges are still in the process of applying for a virtual currency trader registration license. The new members are yet to receive a go-ahead from the FSA to operate in Japan. As a result, they join the JVCEA as a different, second class of members – ‘Type II.’
Among these five new members, three are categorized under ‘cryptocurrency dealers’ as they have already applied to become crypto exchanges and their applications are under review with the Financial Services Agency. The three exchanges are Coincheck, Everybody’s Bitcoin, and Lastroots. The rest two exchanges – Lvc Corp. and Coinage Corp. are not yet registered with the FSA and are not allowed to operate in Japan.
As per one of the reports, currently, JVCEA is only taking Type II members and soon it will be adding a Type II classification for companies that handle virtual currency-related services like wallet dealers.
The other 16 Members of the JVCEA are – Money Partners Inc., BitFlyer Corporation, QUOINE CORPORATION, Bit Bank Corporation, SBI Virtual Currencies Corporation, GMO Coin Co. Ltd, Bit Trade Co. Ltd, BTC Box Corporation, Bit Point Japan Co. Ltd, DMM Bitcoin Inc., Bito Argo Exchange Co. Ltd, Bitgate Corporation, BitOcean Co. Ltd, Fiscal Virtual Currency Exchange Inc., Tech Bureau Inc., Xtheta Corporation.