JAPAN’S two cryptocurrency industry groups are planning to form a self-regulating body by merging in a desperate effort to combat future market hacks following the loss of $530million (£375.68) from the Coincheck exchange, it has been claimed.
The country’s Blockchain Association and the Cryptocurrency Business Association could merge as early as April, according to sources close to the matter.
However, the latter declared that nothing has been decided as of yet.
The move is surely an effort to prevent future hacks after a devastating attack on crypto exchange Coincheck saw hundreds of millions stolen, marking one of the biggest ever virtual currency heists.
Since the incident, Tokyo appears determined to regulate the market.
The move could mark a stark contrast between the harsher stances taken by South Korea and China.
Prices of Bitcoin could be influenced if the deal goes through and subsequent regulation methods are introduced.
Bitcoin has made a slight recovery in the last week from a devastating period of falling prices.
At the time of writing the cryptocurrency is valued at $10,070.01 (£7126.55) that marks an addition of $1,729.22 (£1223.77) to the virtual currency’s price.
The improved market situation marks an increase of 20.73 per cent.
Last month there were scares that South Korea could ban cryptocurrencies outright that happened at the same time prices in the virtual space began to plummet.
However, the country’s finance minister attempted to calm fears by stating that it was not planning to ban trading outright.
Kim Dong-yeon explained: “There is no intention to ban or suppress cryptocurrency [market].”
China has been more aggressive in taking steps to ban cryptocurrencies completely.
At the end of last year Bitcoin exchanges were banned, but this failed to completely cut off trading.
Less developed nations such as India, Zimbabwe and Venezuela are reportedly embracing virtual currencies and using them as vital sources of trade during economic hardships.
