The 16 registered cryptocurrency exchanges currently operating in Japan will soon form a self-regulating body, after a $530 million heist of digital coins in the region led to investor concerns, Reuters reported today.
The decision comes after hackers stole the above sum from Japan exchange Coincheck Inc in January 2018, raising questions regarding the regulation of the industry. This past February, investors in the country were further alarmed when a glitch allowed users to buy bitcoins for free for a short time (though no one was able to make money off of the problem).
In addition to these troubles, crypto exchanges in the region have also reported a rise in money laundering on their platforms.
The future self-regulatory body — name and future date of registration with Japan’s government are undetermined at this point, Reuters reports — will invite other exchanges in the country once their own government applications have been approved, the exchanges state.
The regulatory body will be set up in spring 2018, sources—who did not name themselves—told Reuters.
Read more at Reuters and Business Insider.
To learn all about cryptocurrencies and financial regulation, please join us in San Francisco next week for Bank Innovation 2018. Register here.