The crypto industry in Japan is still reeling from the half million dollar Coincheck heist last month. The fallout from one of the largest digital currency hacks in history was wide reaching. Further calls for safeguards and regulation have been made in what is currently the world’s most crypto friendly nation. Rather than a heavy handed approach from the government, two of Japan’s leading cryptocurrency associations are about to merge to self-regulate the ecosystem.
Self-regulation over government restriction
It was reported today that, according to sources, Japan’s two cryptocurrency industry groups are in talks to form a self-regulating body. The Japan Blockchain Association and the Japan Cryptocurrency Business Association are expected to merge as early as April with the intention of implementing further safeguards to protect traders and investors.
The move comes in the wake of the Coincheck hack which resulted in over $530 million in XEM tokens being stolen from the Tokyo exchange. The amalgamation would reassign the heads of both organizations into one self-regulatory body however no definite decisions have been made yet.
Neither association would release any details to the media however the move is a positive one and would bring about a safer environment for crypto users, merchants and exchanges. The Coincheck hack revealed a number of flaws in Japan’s crypto ecosystem but instead of the government taking a heavy handed approach, as in neighboring China, more proactive and constructive solutions are being sought.
Japan leads the way
The Southeast Asian nation is currently one of the world leaders in cryptocurrencies with reports that over 50% of the global trade last month was made in Yen. According to analytics website Coinhills Japanese exchange bitFlyer is the top exchange for daily Bitcoin trade, with over 314,000 BTC traded in the past 24 hours. Like South Korea, the country has some huge exchanges and its citizens are free to trade providing they remain lawful and do not use cryptocurrencies for any shady purposes.
Self-regulation has to be the way forward as governments are too quick to clampdown on things they cannot control or comprehend. Cryptocurrencies are a prime example and for this embryonic industry to prosper more nations should follow Japan’s lead.