In the wake of a hacking attempt that saw $500 million USD worth in NEM coins plundered from Coincheck, some sixteen Japanese cryptocurrency exchanges have come together to form a new self-regulatory organization.
Nikkei reports that the organization – which at press time is unnamed – will see the licensed cryptocurrency exchanges, which are represented by two trade organizations, work towards new standards for the country’s Financial Services Agency (FSA).
The organization’s foundation has been determined by a new partnership between the Japan Cryptocurrency Business Association (JCBA) and the Japan Blockchain Association (JBA).
Taizen Okuyama, the incumbent chairman of the JBCA, and Yuzo Kano – the present chair of the JBA – will serve as president and vice president of the new organization respectively.
The group will together work towards developing standards for activities surrounding Initial Coin Offerings (ICOs) launched on Japanese soil.
The news confirms earlier reports that Japanese cryptocurrency exchanges were discussing plans to unite in a self-regulatory organization that would ultimately be registered with the FSA.
A bid to regain confidence
The move comes as part of a wider bid to restore investor confidence after Coincheck’s hack ruptured markets. Coincheck itself has not yet been approved by financial regulators due to its security issues – some of which the exchange had been alerted to prior to the massive crytpocurrency heist that occured on its platform.
In an effort to rebuild trust from investors and traders, Coincheck released a statement to Japanese news agency Jiji Press, elaborating that it “expressed its eagerness to continue its business” while looking to “strengthen its computer security system and information disclosure policy.”
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