The crackdown on cryptocurrencies and their trading by Financial Services Agency in Japan has not been a new piece of information. The country has been applying stringent regulations to minimize the use of cryptocurrencies so as to save people from the threat of activities like Bitcoin theft, money laundering and other cryptocurrency scams.
The $532 million hack of crypto exchange called Coincheck, which was by far one of the biggest single cryptocurrency exchanges hack in the history of cryptocurrency in January 2018 made it worse.
Kraken, a San Francisco-based exchange, in April announced that it will stop offering its services to residents of Japan. The exchange will cease accepting deposits from the country, one of the biggest markets for digital coin trading, around the middle of this month. Kraken said,
“Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas. After we have had a chance to better catch to our rapid growth, we will consider the possibility of resuming service for Japan residents.”
Cryptocurrency exchanges will now face harsher standards on system management, including not storing currency in internet-connected computers and having numerous passwords for currency standards.
Hong Kong’s cryptocurrency news is even more shocking. Binance, one of the world’s largest cryptocurrency exchanges in traded value, after pulling staff from its Japanese office due to that regulatory conflict, is planning to open up a new office on the island of Malta.
With more and more established cryptocurrency exchanges fleeing away to crypto friendly nations, Asian Regulators need to be a little mild so to also prevent the nation’s financial system from crashing and cracking down on cryptocurrencies might have some serious repercussions.
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