The association comprising of 16 government-approved cryptocurrency exchanges in Japan has reportedly provided a sneak peak of its self-regulatory rules. The focuses are on banning insider trading and preventing exchanges from listing privacy coins.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
Insider Trading Banned
The Japan Virtual Currency Exchange Association (JVCEA) has given a sneak peak of the draft self-regulatory rules it has been working on, “in an effort to step up consumer protections and improve transparency,” Nikkei reported on Monday. The main focuses of the new regulations are on “insider trading and the trading of new currencies that cannot be traced easily,” the publication detailed, adding:
The proposed rules explicitly ban insider trading. Word has leaked previously that a major exchange would start handling a new currency, which led to a surge in the currency’s value and left many suspecting market manipulation. Such activity would represent a clear violation of the new rules.
Representatives of the JVCEA.
Privacy Coins and Other Restrictions
Previously, news.Bitcoin.com reported that the country’s top financial regulator, the Financial Services Agency (FSA), had pressured exchanges to drop privacy coins. Nikkei soon reported that the agency intended to introduce a rule banning them. Subsequently, Coincheck delisted XMR, DASH, and ZEC.
According to the news outlet, the JVCEA has also introduced its own rules on privacy coins, stating:
The association also wants to prohibit exchanges from accepting new currencies that cannot be traced to previous sellers, since such currencies could easily be used for money laundering and are hard to monitor. Highly anonymous coins like Monero, Dash and Zcash could be forced out of the mainstream.
In order to prevent another Coincheck incident, crypto exchanges must better
