Self-regulating cryptocurrency industry in Japan

Summary:

• Japan’s financial regulator grants the crypto industry the authority to self-regulate

• SEC suspends trading in a firm due to some false crypto-related claims

• Steady as she goes across crypto charts

The most eagerly-watched cryptocurrencies are treading water this morning despite hectic moves across global equities. Some crypto experts would say that digital coins act as a safe haven asset, at least from time to time, this was not always the case though. Today’s newsflow focuses on Japan as well as the United States.

The Financial Services Agency, a regulatory body in Japan, announced on Wednesday that the cryptocurrency industry would be allowed to self-regulate. As a consequence, it can now set rules for operational requirements, consumer protection, prevention of money laundering or employee ethics. Let us remind that Japan became last year the first country to regulate virtual currency trading platforms, as part of efforts to encourage technological innovation while safeguarding consumer assets. According to local pundits the rules under self-regulation are much tougher compared with existing laws and will help regain public confidence.

Dash is trading off the most recent lows this morning but the upside could be capped to the blue trend line seen in the chart above. Once the price breaks through this line, an extended increase toward $173 could be expected. Source: xStation5

The US Securities and Exchange Commission (SEC) announced earlier this week that it had temporarily suspended trading in the securities of American Retail Group “for making false cryptocurrency-related claims about SEC regulation and registration.” In an official statement released by the US regulator we may read that “the company had partnered with an SEC qualified custodian for use with cryptocurrency transactions that would be ‘under SEC regulations,’ and that the company was conducting a token offering that was ‘officially registered in accordance (with) SEC requirements.” Let us recall that earlier this month the SEC issued a warning about companies making false claims of its endorsements used to promote cryptocurrency investments. It then wrote that the SEC “does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.”