TOKYO—The Japan Virtual Currency Exchange Association, a self-regulating body of 16 exchanges, has announced a plan for a new set of guidelines that are designed to prevent money laundering, insider trading, market manipulation, and to increase know-your-customer (KYC) requirements.
The guidelines include penalties for exchange employees who engage in insider trading, Finance Magnates reported.
The new anti-money laundering guidelines would prohibit exchanges from listing coins designed for high levels of anonymity, such as Zcash and Monero.
“Of course, these regulations are not government-mandated and are therefore not required or enforceable by law. However, exchanges who opt not to adopt the guidelines risk damage to their reputations,” Finance Magnates stated.
The JVCEA was born in April of this year after the $530 million Coincheck hack. Two separate blockchain-oriented entities, the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA) combined their forces to form the entity. The organization’s self-described mission is to inspect the security of Japanese cryptocurrency exchanges and to pave the way forward with regulations specific to crypto-related matters, Finance Magnates noted.