The Japanese Financial Services Agency (FSA) certified two local organizations as Certified Financial Instruments and Exchange Associations.
As of April 30, the FSA has recognized the Japan STO Association and the Japan Virtual Currency Exchange Business Association (JVCEA). as self-regulatory groups for derivative transactions and cryptocurrency value token offerings. After that, JVCEA will be renamed “Japan Crypto Asset Trading Business Association” on May 1st.
JVCEA is the official self-regulatory organization for the cryptocurrency industry in Japan, which is authorized to create regulations and guidelines for the exchange of cryptocurrencies in the country.
Cointelegraph asked JVCEA for a comment, but received no response at the time of printing.
Recent developments in the cryptocurrency sector in Japan
As of March, there were 21 registered and licensed exchanges in Japan, with three more companies registered as second class members. These were the main U.S. cryptocurrency exchanges, Coinbase, Digital Asset Markets and Tokyo Hash.
In January, the FSA officially proposed to lower the leverage limit for crypto margin trading. According to reports, the FSA planned to implement the regulation in April as soon as a revised version of the Financial Instruments and Exchanges Act comes into force.
JVCEA set a fourfold leverage limit last year, according to which some crypto exchanges in the country lowered their interest rates. However, some local economists suggested further lowering the tax rate twice to match that of other jurisdictions such as the European Union.