The Japan Virtual Currency Exchange Association (JVCEA) filed an application with the country's Financial Services Agency (FSA) to become a "certified fund settlement business association" on August 2, according to JVCEA's website.
If formally recognized by the FSA, the JVCEA will have the official go-ahead to become a self-regulatory organization. This is in line with the organization's stated intentions since its formation in March of this year. It will then have the FSA's blessing to enforce rules the exchange association drafted in June that, in part, prohibit exchanges from engaging in insider trading or listing privacy coins.
The JVCEA is a consortium of 16 FSA-approved currency exchanges seeking to legitimize Japan's crypto space in the wake of the Coincheck hack, in which $500 million worth in crypto was stolen. Its members include bitFlyer, Bitbank and SBI.
In a statement about the filing from Friday, August 3, the JVCEA writes:
"We will work closely with registered virtual currency exchange traders and all those who support us while fully working to restore users' trust in domestic virtual currency handlers and markets."
Quotations translated from Japanese using Google Translate.