Japan Establishes Self-Regulatory Organization with 16 Licensed Cryptocurrency Exchanges

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New Cryptocurrency Regulatory Body in Japan

Japanese media reports indicate the successful registration of a new cryptocurrency organization with Japan's Financial Services Agency (FSA). This self-regulatory body comprises 16 fully licensed cryptocurrency exchanges operating under FSA oversight.

According to Jiji Press, the Japan Virtual Currency Exchange Association (JVCBA) recently convened its inaugural meeting to elect leadership. The organization plans to officially appoint Mr. Yasutaka Okuyama (President of Money Partners) as chairman during its second board meeting on April 23—the same day the association becomes fully operational.

Notably, JVCBA will function as a rule-making entity with authority to investigate and discipline member companies, marking a significant step toward industry standardization.

Founding Members Overview

The JVCBA's 16 founding members represent Japan's most established licensed exchanges:

👉 Explore how leading exchanges ensure compliance

Japan's Evolving Crypto Regulatory Landscape

Japan's cryptocurrency ecosystem previously operated under two primary associations:

  1. Japan Blockchain Association (JBA) - Led by Bitflyer CEO Yuzo Kano
  2. Japan Cryptocurrency Business Association (JCBA) - Chaired by Money Partners' Yasutaka Okuyama

The JVCBA will coexist with these groups while introducing stricter membership criteria. Unlike JBA/JCBA—which included platforms like Coincheck (hacked in January 2018) operating under provisional FSA approval—all JVCBA members hold full FSA licenses.

Enhanced Consumer Protection Measures

Following high-profile security incidents, the FSA has intensified oversight of provisionally approved exchanges. Professor Nakajima Masashi of Reitaku University, an FSA research group participant, emphasizes improving transparency:

"Most users remain unaware when exchanges lack full licensing. We need mechanisms—like prominent website notices—to clearly indicate regulatory status."

This push aligns with Japan's reputation as a global leader in cryptocurrency regulation, balancing innovation with investor safeguards.

Frequently Asked Questions (FAQs)

Q1: How does JVCBA differ from existing Japanese crypto associations?

A: Unlike JBA/JCBA, JVCBA exclusively comprises FSA-licensed exchanges and holds formal disciplinary powers over members.

Q2: What prompted Japan to create this new regulatory body?

A: The 2018 Coincheck hack ($530M loss) accelerated demands for stricter self-regulation alongside FSA oversight.

Q3: Can unlicensed exchanges still operate in Japan?

A: Yes, but only under provisional FSA approval during application review—a status JVCBA members have surpassed.

Q4: How might this impact international crypto businesses?

A: Japan's regulatory clarity often sets global precedents. 👉 Learn about cross-border compliance strategies

Q5: What consumer protections does JVCBA provide?

A: Standardized rules for security audits, dispute resolution, and mandatory transparency about licensing status.

Q6: Will JVCBA membership expand beyond the initial 16 exchanges?

A: Likely—as more exchanges obtain full FSA licensing, they may qualify for JVCBA membership.