The Japan Virtual Currency Exchange Association (JVCEA), the body set up to monitor and regulate crypto businesses in Japan, recently registered major U.S.-based crypto exchange Coinbase and two other companies as Class 2 members.
Coinbase Joins JVCEA Ranks
The JVCEA announced the news of the registration on its official website on Monday, March 2, 2020. According to the announcement, the latest exchanges listed as Class 2 members include Coinbase, Asset Markets, and Tokyo Hash.
With the entrance of Coinbase and the two other exchanges, the members in the Class 2 category have risen to nine (9). Previous members include Coinage, OK Coin, WIREX Japan, among others.
Also, the JVCEA currently has 22 crypto businesses registered as Class 1 members. They include LVC Corporation, Rakuten Wallet, Coin Check, Bitpoint Japan, GMO Coin, BitFlyer, GMO Coin, SBI VC, Tao Tao, among others.
In 2018, Coinbase applied for a license with Japan’s regulatory watchdog, the Financial Services Agency (FSA) to operate in the country. Despite the agency’s stringent regulations regarding the crypto space, the company was optimistic about getting the license in 2019.
JVCEA Heavily Involved in Japanese Crypto Governance
The JVCEA, comprising local crypto exchanges, was formed back in 2018 by the FSA, following the massive hack that occurred on the Japanese crypto exchange, Coincheck. Hackers reportedly stole over $500 million worth of NEM for the platform.
The body is mandated to monitor, raid, and sanction any virtual currency exchange that is running afoul of the law.
Following the establishment of the JVCEA, various exchanges have joined the consortium over the years. As reported by BTCManager back in January 2019, the body registered five crypto platforms as Class 2 members, bringing the total number of members at the time, to 21.
Apart from regulating exchanges, the JVCEA has also proposed rules for crypto margin trading in Japan. Shortly after its formation, the consortium proposed a four-to-one leverage cap on virtual currency margin trading.
In March 2019, the FSA amended the regulations on crypto margin trading, setting the limit on digital currency trading between two and four times the initial deposits, to take effect in April 2020.