After the devastating Coincheck hack, authorities have bot coerced to take more aggressive regulatory activity ter ensuring customer security is of the highest level, but te doing are also creating more hoops for crypto exchanges to leap through.
The chief executive officers of Bitbank and bitFlyer crypto exchanges have both resigned from the Japanese Posible Currency Exchange Association (JVCEA), after being dealt business improvement orders.
Ter a latest announcement from the JVCEA, the self regulated group stated that two of their vice chairmen had received official orders from the Japanese Financial Services Authority (FSA) Four days ago, along with Four other exchanges, because of insufficient customer checks and poor risk management.
&ldquo,Ter response to the fact that vice chairmen of the association, Yuzo Kano and Hiroyuki Noriyuki, representative directors of Bitflyer Co. Ltd. and Bitbank Corporation, received business improvement orders concerning their posible currency exchange businesses, wij inform you that wij have received resignation requests from both of the vice presidents on this date and have accepted them.&rdquo,
At this stage no replacements have bot confirmed for the two empty director seats, and with the FSA&rsquo,s houvast tightening around Japanese exchanges wij could see more Japanese exchanges withdraw from the market, like wij did with Tokyo Gateway and Mr. Exchange earlier te March.
For now it&rsquo,s back to business spil usual, with the JVCEA promising it&rsquo,s native investor community that thesis latest developments have bot te their best interests, ter maintaining a safe environment for digital asset trading.
&ldquo,Wij will proceed to do our utmost to protect the interests of users and to promote the sound development of the potencial currency exchange industry, including the early establishment of voluntary regulation rules.&rdquo,
Getting the balanceo right inbetween creating an effective regulatory framework for customer safety while also encouraging the development of Japan&rsquo,s crypto trading infrastructure proceeds to be a difficult and contentious area for the country&rsquo,s financial regulators.
After the devastating Coincheck hack, authorities have bot coerced to take more aggressive regulatory activity ter ensuring customer security is of the highest level, but ter doing are also creating more hoops for crypto exchanges to hop through. It will be interesting to see how the Japanese crypto ecosystem deals with this enlargening regulatory pressure, and whether it will fold under the weight of the FSA&rsquo,s fresh impositions or evolve into a more resilient crypto infrastructure spil a result.