Japan has long been in two minds as to how approach the growing cryptocurrency market. Japan was a very pro-Bitcoin country, one of the few to allow certain companies to pay their employees in Bitcoin, instead in Japanese yen.
Japan has taken the next step in proving its pro-crypto status, as it just granted the cryptocurrency industry a self-regulatory status. According to Reuters, the Japan Virtual Currency Exchange Association will have to monitor all cryptocurrencies in the country.
The Association will have the right to apply the necessary rules in safeguarding users’ assets, give general guidance in the industry and police any criminal activities such as money laundering.
All cryptocurrency exchanges that operate in Japan need to be registered with the Japanese Financial Services Agency. Japan wants to ensure that the industry is growing, but with the necessary precautions when it comes to protecting Japanese citizens and limiting occurrence of crypto-related crimes.
While Japan is certainly pro-crypto, it sets the right tone when it comes to regulations. Now, the Association in charge of regulating the industry will have the hard task of maintaining the needed qualified personnel that is familiar with cryptocurrencies and their risks.