Japan’s two primary cryptocurrency industry groups are merging to form a new self-regulatory entity following the recent $530 million hack of Tokyo-based exchange Coincheck.
The unnamed new entity is set to launch April 1, the Nikkei reports, a year to the day after Japan’s revised Payment Services Act – which recognizes bitcoin as a legal method of payment – kicked in. The self-regulatory body will see the unification of the Japan Blockchain Association and the Japan Cryptocurrency Business Association. The former is notably founded around bitFlyer, Japan’s largest cryptocurrency exchange.
The new entity aims to quickly enforce self-imposed rules surrounding the protection of exchange users’ assets, system downtimes, insider trading and even advertising. Additionally, penalties for breaches will also be considered. All of which sums up to a transparent foray to foster confidence from the public and the conventional financial industry in the cryptocurrency space, particularly in the aftermath of a major hack.
According to the report, talks toward a self-regulatory body were fast-tracked following last month’s infamous hack of cryptocurrency exchange Coincheck, now seen as the biggest cryptocurrency theft ever. A basic agreement toward the unified self-regulatory body on Thursday hinted at bitFlyer CEO Yuzo Kano becoming the body’s vice-chairman at launch.