Japan’s Financial Services Agency Grants Third Party to Self-Regulate Cryptocurrencies – Is a Similar Move Likely in the US?

Colleagues, the Financial Services Agency of Japan has granted approval for the Japanese Virtual Currency Exchange Association (JVCEA) to self-regulate the exchange of cryptocurrencies. Officially referred to as a "certified fund settlement business association” (aka the Association of Certified Fund Settlement Business Operators). The scope of the JVCEA appears to encompass the definition of crypto exchanges policies, enforcement and impose unspecified penalties on violators. This surely comes as music to the ears of Coincheck, Bitbank, GMO and other exchanges based in the island nation. Bottom line: Would Japan’s self-regulation model be acceptable to the US SEC or CFTC? Answer: Not a chance. Both US regulatory bodies – while seeing the potential value of cryptocurrencies – have major reservations regarding the security of crypto exchanges, illicit activity performed on crypto exchanges (such as money laundering, contraband and the undermining of economic trade sanctions) as well as the legal categorization of digital assets as bona fide “securities” or “commodities”. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)