An association of 16 cryptocurrency exchanges is working on a draft of self-imposed rules in a continuing attempt to secure the industry following the Coincheck hack. The vote on these rules is set for June 27.
Next week, Japan's Virtual Currency Exchange Association[1] (JVCEA) will vote on a proposed set of voluntary rules intended to improve the security and transparency of virtual currency exchanges.
The 16 member exchanges came together in March, in the wake of the theft of roughly $530 million[2] worth of NEM from the Tokyo-based exchange Coincheck.
According to a report[3] in the Nikkei Asian Review, the new rules, which currently span nearly 100 pages, would ban insider trading, prohibit exchanges from accepting new currencies that "cannot be traced to previous sellers" (commonly known as privacy coins[4]), and expand consumer protections. The new regulations would also require individual exchanges to perform audits and report the results to the JVCEA.
This JVCEA has not been the only Japanese attempt to more tightly regulate cryptocurrency exchanges since the Coincheck theft. In February, the FSA began inspections[5] of exchanges, ordering some to cease operations[6]. At a recent meeting[7] of the Financial Action Task Force, the international anti-money laundering organization, a Japanese official claimed Japan would be seeking a prominent role in establishing binding, international rules for cryptocurrency exchanges.
Tim Prentiss is a writer and editor for ETHNews. He has a master’s degree in journalism from the University of Nevada, Reno. He lives in Reno with his daughter. In his spare time he writes songs and disassembles perfectly good electronic devices.
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