The local cryptocurrency exchanges of Japan are being put under pressure from country’s Financial Services Agency (FSA) to de-list anonymous altcoin, such as Monero, Zcash, and Dash.
A threat is looming over the future of privacy-centric altcoins such as Monero, Zcash, and Dash in Japan. The local cryptocurrency exchanges of Japan are being put under pressure from country’s Financial Services Agency (FSA) to de-list anonymous altcoin.
The Financial Services Agency is Japan’s regulatory agency which grants licenses to cryptocurrency exchanges. Jake Adelstein, a Tokyo-based journalist reported that according to sources within FSA, in order to prevent users from making anonymous transactions, the authorities are considering all possibilities to pressurize local platforms to discontinue supporting altcoins.
On April 10, a member of an FSA-sponsored cryptocurrency working group, said,
“It should be seriously discussed as to whether any registered cryptocurrency exchange should be allowed to use such currencies.”
The FSA states that these cryptocurrencies can be easily used for criminal and illegal activities because these are far harder to track, even more than bitcoin. They can be tracked in cases of mistakes made by users.
For example, Monero is being used by hackers for “cryptojacking” attacks, in which computers get infected with malware. By hijacking CPUs, attackers use them for mining cryptocurrency.
As of now, there’s no legislation in Japan to ban the trade of privacy-centric altcoins. However, it seems that the efforts of FSA to wipe out anonymous cryptocurrencies are doing well. For instance, to convince the FSA and get a license, Coincheck has de-listed Monero and two other lesser-known privacy-centric altcoins. It is to be noted that in January Coincheck suffered a record-breaking hack and was later acquired by Japanese brokerage Monex.
Lately, a self-regulatory body was formed by the licensed cryptocurrency exchanges of Japan. This body will have enforcement power over its members and will be able to create a whitelist of cryptocurrencies that exchanges are allowed to list. This will enable FSA to easily put pressure on exchanges to de-list crypto assets which it does not approve, without the need to create official legislative prohibition.
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