Japan’s Virtual Currency Exchange Association (JVCEA) is set to announce new laws on insider trading next week, reports the Nikkei Asian Review.

The chairman and president of the organization is Taizen Okuyama of Money Partners. Bitflyer CEO Yuzo Kano is the vice chairman, along with Bitbank president Noriyuki Hiroeno. The other two directors are SBI Virtual Currencies’ Yoshitaka Kitao and GMO Coin’s Tomitaka Ishimura.

The JVCEA comprises of 16 licensed crypto exchanges, who are self-described as security inspectors of Japan’s cryptocurrency exchanges. It is proposing a ban, along with penalties for infringement, on cryptocurrency insider trading.

Also, the regulations may extend to “anonymity-oriented cryptocurrencies” on exchanges. These are currencies which can’t be traced to previous sellers as its felt that they could be used for money laundering purposes, such as Monero, Dash, and Zcash.

Other proposed regulations that are thought to become prioritized by the association relating to the protection of customer assets suggest a better management process for customers keeping private keys offline to prevent hacking opportunities. The publication further measure aimed at protecting customers:

“…exchanges will be required to keep their quoted rates from widely deviating from the prevailing market rates. Exchanges would also need to introduce circuit breakers to halt trading should a currency’s value suddenly surge or plunge.”

It is thought these new measures concerning private coins will be introduced due to earlier reports that if a major exchange were to handle a new currency this would cause a market surge, followed by the suspicion that the market had been manipulated. The new rules by banning the private coins will eliminate this risk, according to JVCEA.

According to the Nikkei Asian review, the association has gone to great lengths to cover all aspects of how exchanges should function, drawing up nearly 1,000 pages of self-regulatory measures.

The new requirement hasn’t gone down well with all exchanges, however. One exchange spokesman commented, “We’re being subjected to rules almost as tough as the Financial Instruments and Exchange Act.” – the rules which govern securities companies in Japan.


Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Comments are closed.

Check Also

FATF to Enforce Time Restriction on Exchanges’ Customer Information

The Financial Action Task Force (FATF), who met last week for another round of talks to de…