Self-Regulating body in Japan prohibits anonymous cryptocurrencies and insider trading, Cointelegrah reports.
On June, 27 Japan’s Virtual Currency Exchange Association (JVCEA) will publish new self-regulatory rules in order to enhance investors’ protection and improve transparency. Trading platforms will combat money laundering and insider trading.
Japan Prohibits Anonymous Cryptocurrencies And Insider Trading
According to the new rules, trading platforms will recommend not to work with anonymous coins, such as Monero and Zcash. It is planned to tighten the punishment for employees of stock exchanges that were seen in insider trading.
Earlier the cases have been recorded when the coins went up after the announcement about listing the coin to some exchange. This was also the ground to suspect some employees in market manipulation. Now this kind of activity will be regarded as a violation of the rules.
In order to combat money laundering, the exchanges will also be recommended to impose a ban on the trading anonymous cryptocurrencies, such as Monero and Zcash. It is planned to tighten the punishment for employees of cryptocurrency exchanges that would found guilty of insider trading.
JVCEA
The Japan Virtual Currency Exchanges Association was founded in April 2018 after hacking into the Coincheck exchange. Coincheck lost $ 530 million in the NEM cryptocurrency as a result of the hacker attack. The organization consists of 16 trading platforms, which were licensed by the government. They monitor the activities of local exchanges, ensure their safety, assess cryptocurrencies, tokens and so on.
In April, JVCEA published guidelines under which local trading platforms should keep their funds separate from client assets. They have to have a minimum equity of 2 bln won ($1.8 mln) and regularly publish financial reports.
Probably, this kind of transparency will increase confidence in the cryptocurrency among the Japanese population. However, good news does not yet have an obvious positive effect on the cryptocurrency market.
