Before January’s CoinCheck heist, Japan was fully embracing the cryptocurrency craze. They didn’t have any regulations, cryptocurrency was legal tender and nobody could have anticipated anything going wrong, but then things did go wrong, very wrong. CoinCheck was hacked and they lost $533 million-worth of NEM coins. The exchange was nearly completely ruined and the rest of Japan suddenly open their eyes to risk involved with cryptocurrency.
That said, it has recently been reported that in an attempt form a new self-regulatory body, cryptocurrency are coming together and uniting. As of today, 16 exchanges have already transitioned to self-regulate. There is no name that this self-regulatory body goes by at the moment, but the new organization will probably come into full light as soon as next week.
This wasn’t in anyway the original plan to pop out amidst the CoinCheck heist. The initial idea was to merge the Japan Blockchain Association and the Japan Cryptocurrency Business Association. Due to disagreements between them, this plan never came into full fruition. The exchanges then decided to create a new organization that could be registered with the Japanese FSA.
With the CoinCheck heist still fresh on everyone’s mind, especial the FSA’s, they have just announced they will organize on-site inspections of 15 unlicensed cryptocurrency exchanges. It hasn’t been confirmed in those 15 exchanges have anything to do with the new self-regulatory body. It is also unclear if CoinCheck will take part in the faction.
Things in Japan sure have changed since the CoinCheck heist. The FSA has recently order every exchange in the country to send it reports that detail their security protocols and their resistance to hacking.
2018 has turned a new page in the relationship between cryptocurrency and Japan. It will sure be interesting to see how things play out throughout the year.