Crypto News | Japanese Exchanges Form Self-Regulatory Body

Have you heard about the massive NEM theft? No? Have you been living under a rock? Never mind, that’s what we’re here for. Coincheck lost $500 million worth of NEM tokens to a massive hack in February, resulting in NEM being one of the biggest losers of the month when it comes to both price and market cap. The bigger issue, however, is that users have lost confidence in Japanese exchanges. To tackle that problem, 16 licensed crypto exchanges from Japan have formed a self-regulatory body. The organization’s main purpose is to tackle security issues and propose measures and practices to ensure that Japanese exchanges adhere to higher security standards. The next step will involve developing stricter guidelines for initial coin offerings.

Talking about industry standards, the various practices on the cryptocurrency market have come under fire from the Bank of England. Governor Mark Carney made a comment last week, calling cryptocurrencies a “failure” and a “lottery”. Well, if cryptos are a lottery, Bitcoin investors are winning right now. BTC is hovering around $11,500 right now, and it came very close to the magical $12,000 several times during the weekend.

Still, this is nowhere near the maximum price of close to $20,000 BTC achieved in late December of last year – the year when cryptocurrencies entered the public consciousness. According to recent reports, even North Korea made $200 million off crypto transactions last year, alleviating some of the impact of strict international sanctions.

Many experts agree that, in order for cryptocurrencies to avoid all criticism going forward and wash off the bad rep, regulation like the one Japanese exchanges are performing is essential. But that is not all it will take. Cryptocurrencies also need support and recognition from established financial institutions and traditional payment systems. In that regard, the recent announcement by PayPal comes as a breath of fresh air. The company announced that it was working on a system that would speed up cryptocurrency transactions, making payments much faster and easier, and allowing cryptocurrencies to actually be used as means of payment.

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Author: Max Rothstein

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