JVCEA: Overview of the Self-Regulatory Framework

Recognised Financial Instruments Business Association and Second-Type Recognised Funds Settlement Business Association, recognised on 2018-10-24

1. Overview

Name: Japan Virtual and Crypto assets Exchange Association (formerly Japan Virtual Currency Exchange Association; renamed in 2020-05)
English name: Japan Virtual and Crypto assets Exchange Association
Established: 2018-04, through the consolidation of two predecessor associations
Legal status:
- Recognised Financial Instruments Business Association under the Financial Instruments and Exchange Act
- Second-Type Recognised Funds Settlement Business Association under the Payment Services Act
Recognition date: 2018-10-24, with dual recognition from the FSA
Purpose: To formulate self-regulatory rules for crypto-asset exchange and derivatives businesses, protect users, and promote a sound industry
Location: Chuo-ku, Tokyo

Chairperson: Elected from representatives of member companies, based on public information
Vice chairpersons: Multiple, typically drawn from major industry VASPs
Auditors: Independent audit function, including external participation
Secretariat: Full-time staff handling day-to-day operations
Specialist committees: Token review committee, audit committee, dispute resolution committee, AML/CFT committee, and others

Membership screening: Reviews the structure and compliance of VASPs applying for membership, both before and after FSA registration
Token review (White List): Prior-review framework for new listings. Members must obtain JVCEA approval before handling newly listed tokens. The framework includes a standard prior review and a simplified review. See JVCEA whitelist token listing for details.
Audits and monitoring: Ongoing review of member operations, financials, and asset segregation. This is also reflected in spot-volume statistics analysis.
Dispute resolution (ADR): Handles complaints and disputes between users and members as the designated ADR body
Public awareness and education: Publishes industry reports and statistics, and supports financial literacy activity

Type 1 members: Crypto-asset exchange businesses and crypto-asset derivatives businesses that are registered with the FSA
- Examples: bitFlyer #1002, Coincheck #1017, BitTrade #1003, and many others
- As of 2024-09, the number of Type 1 members was in the mid-to-high 30s, based on the official member page
Type 2 members: Associate and related businesses, including firms not registered with the FSA, firms preparing registration, infrastructure providers, and overseas partner institutions
Exact total membership count: Published on a rolling basis on the official JVCEA member page; if no reference date is given, this article treats the exact total as not fixed

Crypto-asset exchange businesses in Japan operate under a two-layer structure: direct FSA supervision under the Payment Services Act / amended FIEA, plus JVCEA self-regulation
The FSA recognises JVCEA as a formal body and leaves certain implementation details to it, including White List operations and revisions to self-regulatory rules
This is the core reason Japan’s VASP regulatory structure is often described as a hybrid of public supervision and industry self-regulation
Related: Japan financial regulation - the FSA is the primary regulator, while JVCEA provides industry self-regulation