Japan's Cryptocurrency Business Association Plans for August 1 Guidelines

This week we reported on upcoming events that might be taking place on August 1, concerning potential interruptions connecting to the Bitcoin network. Now the Japan Cryptocurrency Business Association made up of various regional exchanges is preparing to draft service suspension directives for bitcoin users in the country for that specific date.

Also read: Mining, Merchants, and Traders—Thailand’s Got the Bitcoin Fever

Japan Cryptocurrency Business Association Considers Guidelines for August 1

Japan has had bitcoin fever over the past few months. Since this past April interest in the decentralized currency has grown quite a bit since the Japanese government legalized bitcoin as a form of payment. Now as the country continues to progress in adoption a possible blockchain split may happen in two weeks, and Japanese bitcoin businesses want to be prepared.

According to the Nikkei Asian Review, the Japan Cryptocurrency Business Association (JCBA) is currently deliberating guidelines for a one day to one week “freeze on bitcoin transactions.” The JCBA organization says it aims to “actively investigate and research necessary information, consolidate knowledge and exchange opinions, and aim for sound industry development” in Japan. As far as August 1 is concerned, the association made up of fourteen regional cryptocurrency exchanges says it wants to “protect customer assets.”

Japanese Exchanges Detail Suspensions and Decision Announcements

The publication also details the trading platform Bitflyer is still undecided on its decision but will release an announcement next week. The Japanese exchanges Bitbank and Tech Bureau has detailed trading will be allowed, but deposits and withdrawals will be suspended until the possibility of a fork is resolved.

The statement from the JCBA and a few Japanese exchanges follows the announcement from the GDAX exchange on July 13. The exchange announced the suspension of deposits and withdrawals on August 1 and the possibility of halting trades as well. GDAX executive Adam White says the decision was based on technical risks and the possibility of “network instability.”

Masayuki Tashiro, a data analyst at the Japanese trading platform Fisco, says the chance of instability could make some transaction records inaccurate.

If there really is a fork, some transaction records could disappear

There’s still a possibility that nothing happens on August 1 and the industry is just playing it safe as they did this past March. This weekend the code for Segwit2x will be delivered and Segwit activation could happen, which might stop the potential August 1 fork. The JCBA is just following protocol, and other exchanges will likely do so leading up to the next two weeks in order to protect their businesses from legal repercussions.

What do you think about Japan Cryptocurrency Business Association drafting August 1 guidelines? Let us know in the comments below.

Images via Pixabay, Bitcoin.com, Japan Cryptocurrency Business Association.

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