Japan has been experimenting with self-regulation in crypto with JVCEA, but it has failed to implement it successfully. The local government and experts in the industry have noted that it is not working as expected. So, Japan’s self-regulation entity JVCEA (Japan Virtual Currency Exchange Association), has been warned by the Financial Services Agency (FSA) of the country recently. The JVCEA was tasked with working on crypto guidelines. It was expected that they would do a better job than the government body. However, it turned out differently.
Japan fails to implement self-regulation in crypto successfully
The experiment that Japan did was already expected to fail when it began. Now it is clear that the country must work on its crypto regulations yet again. The JVCEA has done a poor job on crypto regulations, and it is also the reason that they received warnings from Japan’s FSA. They are responsible for passing and enforcing regulations over crypto exchanges that operate in Japan. This also includes major platforms like Coinbase that have their subsidiaries in the country.
However, the FSA has pointed out that the JVCEA has been very slow in terms of formulating and implementing crypto regulations in the country. They have delayed the regulation for anti-money laundering time and again. The JVCEA has also suffered from poor management and with lack of communication among its staff.
The FSA also warned them back in December and asked about their operational process, the reason for the current situation, and the responsibilities that the board members have. It was also a strict warning from the FSA’s side, but it didn’t do much. Japan’s PM also asked them to speed up their process to approve the listing of new tokens on exchanges while still ensuring user safety.
The problem with JVCEA
It is reported that the problem with JVCEA is their management. They are either not interested in the crypto industry or don’t have any knowledge of it. People who are supposed to work on regulation don’t even have the most basic knowledge of what a blockchain is. Hence, the FSA is really worried and angry about the situation. JVCEA says they are working on these problems and will fix them soon. But, a board member of the organization said that they do not have enough resources to work at a swift pace.
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