Japan is getting involved in a new crypto project. The country is planning to launch their first “self-regulatory organization” and the second in the world, after UK.

The Japan Blockchain Association and Japan Cryptocurrency Business Association will join together to form a new company based on “self-regulatory” principles.

The project is supposed to be launched on 1 April 2018.

The new company aims to educate the crypto industry in the country. This implies the idea of implementing their own regulations related to the cryptocurrency usage. Also, the organization’s principles will take into account the protection of the users who trade via crypto exchanges and not only.

The newly created company will be entitled to offer penalties to platforms that do not comply with the rules in force. Their main goal is to provide the necessary transparency for a higher security inside the digital industry, eliminating some inconveniences, like hacker attacks and money laundering.

About the project’s idea

The idea of the project started from the last month’s attack held on one of the most influential cryptocurrency exchanges in the world- Coincheck. The attackers managed to extract 530 million US dollars from the company’s wallet. This case was named the biggest crypto theft in the history.

According to the Japan’s law in force, all the new crypto platforms must register at the Financial Services Agency. This fact will give them a license to operate legally with the companies’ activities.

Japan is following CryptoUK

We want to remember that the first “self-regulating organization” in the world is called CryptoUK. The announcement was made on 13 February 2018. Seven crypto exchange platforms joined together to develop in the future new rules related to crypto services. These are: Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock.

Do you think that other countries will follow UK and Japan in order to create new self-regulating organizations?