Japan’s Cryptocurrency Industry Set to Launch Regulatory Body

 

 

Two of the biggest cryptocurrency associations in Japan are coming together to launch a regulatory body to help to save cryptocurrency users in Japan.

The japan cryptocurrency Business Association and the Blockchain Association of Japan are looking at a possible merger in the fall of April. This is as result of the numerous cryptocurrency exchanges hacks and scam deals in the market.

This Is as a result of the $530million heist involving the Japanese cryptocurrency exchange Coincheck.

Sources involved in the negotiation says that the merged organization could appoint head from any of the two organization but nothing has been decided because they were not authorized to speak to the media yet.

The aim of this is to help safeguard investors funds and help put some measures on how exchanges in Japan run and manage their business.

Although, this regulatory will be self-regulated to avoid influences from external bodies.

Last month Coincheck lost a whooping sum of $530million to hack, as a result withdrawal was disabled on the website.

Coincheck announced on Friday it would allow customers to restart yen withdrawals on Tuesday. The exchange, which disabled all withdrawals of yen as well as other digital currencies following the theft, said it had verified the strength of its system security.

Coincheck has since then received withdrawal requests from it’s customers totaling about 30 billion yen ($280 million),

The exchange has however maintained they will keep a restriction on cryptocurrency withdrawal until it can guarantee the resumption of operations

The Coincheck hack has exposed loop holes in Japan’s system of regulating cryptocurrency trading, and genuine question has been over the country’s rush to oversee the industry – a move that was in   contrast to clampdowns by cryptocurrency policymakers in countries such as South Korea, China and India.

Lots of questions are being asked currently as to if this will make any change in the cryptocurrency industry.

 

 

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