The Japan Cryptocurrency Association (JCBA) and the Japan Blockchain Association (JBA), announced on March 2nd. This decision comes amidst in-depth discussions on stricter regulations. The Japanese cryptocurrency exchanges the loss of massive quantities of Coincheck Inc.’s NEM coins at the end of January.
The agreement on the formation of the new body was concluded by 16 cryptocurrency exchanges that were registered with the Financial Services Agency (FSA). However, the new body will not include exchanges such as Coincheck, whose applications are pending. Currently, the details are unclear with respect to the new organization, such as its name, location and time of establishment, but the goal is to make it an organization with legal support. Companies wishing to complete registration with the FSA will be able to join the organization in the future.
The goal of the creation of the new organization is to strengthen the self-regulation of Japan’s cryptocurrency activity. The new organization will merge the main players in the cryptocurrency business that were split before the Coincheck incident.
More major companies in Japan will get involved in the cryptocurrency business. Megabanks Mitsubishi UFJ Financial Group, Inc. (MUFG) and Mizuho Financial Group, Inc. are developing their own cryptocurrencies, MUFG Coin and J-Coin respectively, the latter being pegged to the Japanese yen.
LINE, a social media platform used by many Japanese, is also expanding into cryptocurrency, and Mercari, a popular flea market application in Japan’s domestic market, has also announced plans to participate. Currently, there are 100 companies on the FSA waiting list for the assessment of eligibility to become an exchange.
Expectations are that the new organization will become a positive factor that enhances transparency in the company at a time when cryptocurrency activities in Japan are showing signs of takeoff.
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