Japan has formed the Japan Authority of Digital Asset or JADA, an advocacy group for Bitcoin businesses which is expected to establish standards and codes of conduct for its members. Interestingly enough, it has the explicit backing of the nation’s government and part of Japan’s government intentions to not legislate for regulation of Bitcoin.
The JADA is a brainchild of Japanese Member of Parliament Mineyuki Fukuda who belongs to the ruling Liberal Democratic Party and his IT Committee. Now, the organization which was formed after consultation with members of Bitcoin’s business community, aims to allow the nascent technology to flourish and determine its own way by regulating itself.
According to the sources from JADA the organization is expected to propose guidelines and “softly monitor” its members, with no legislation required. Thus, it looks, the formation of the organization which also is backed by Japan’s government is part of the policy by the national government which does not want legislate for the regulation of Bitcoin.
The official stand taken by the Japanese government is that it won’t legislate to regulate Bitcoin; rather, prefer to allow the nascent technology to flourish and determine its own way by regulating itself. Thus, though the government doesn’t want to regulate the digital currency, it also does not want to show that it is not taking initiatives after the collapse of Mt. Gox.
JADA to Work in Coordination with the Japanese Government
Mineyuki Fukuda has shown great interest in Bitcoin and being a leading proponent of the digital currency development in Japan; he regularly meets with members of the community and shows a personal interest in the underlying technology. Now, with JADA and the government’s IT Committee, he believes the digital currency would be able to hold ground.
According to Mineyuki Fukuda now Japan’s Financial Services Authority (FSA) and JADA will be working together to ensure Bitcoin expands its reach without breaking any rules and regulation of the government. Though JADA is still in its formative stages, it will help in brainstorming policy and gathering members from the Bitcoin community.
It is believed that the formation of JADA may help Bitcoin at large as the ‘self-policing’ method of getting Bitcoin businesses to behave might serve as a model for other countries who are struggling to determine how digital currency activity could fit into existing or new legal frameworks.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org