Japan Virtual Currency Exchange Association (JVCEA) is a self-regulation entity for the Japanese cryptocurrency industry. It was established in 2018, after the $350 million hack of Coincheck.
One of the main goals of JVCEA is to maintain certain standards on their platforms to reduce major attacks, by reducing vulnerability.
Recognized by the Financial Services Authority (FSA), it has the right to pass and enforce regulations and standards for cryptocurrency exchanges in Japan.
As of right now, JVCEA has 22 class 1 members which include major crypto platforms that conduct business in the country like Coincheck, BitFlyer, Tao Tao and more.
JVCEA announced on Monday the membership of 3 new companies as class 2 members, bringing the total amount to 9, with the members now consisting of Coinbase, Mercury, CoinBest, Coinage and more.
In order to apply for a class 2 member of the JVCEA registration, the business needs to be registered as either a cryptocurrency exchange company or need to be planning to enter the Japanese market.
Additionally, exchanges that wish to offer services in Japan will require a license from the Financial Services Agency (FSA), the country’s market regulator.
In order to obtain the license, companies will need to meet a series of standards with regards to system risk management, segregation of customer accounts, KYC requirements, data security and user protection.
By offering its services to Japan as well, Coinbase is carving out a path for itself towards domination over the global cryptocurrency market. However, Coinbase had already rapped into the Japanese market with an operational license last year, but there were no significant steps to introducing its services in the country.