Tuesday, December 18, 2018
Home » Tag Archives: Japan

Tag Archives: Japan

Feed Subscription

How Self-Regulation Could be a Game Changer for Japan’s Cryptocurrency Exchanges

  By David Drake   Japan’s cryptocurrency market has experienced numerous cyber-attacks that have led to loss of billions. With this in mind, Japan has been contemplating lawful cryptocurrency aspects for a while and its Financial Services Agency (FSA) has finally granted the cryptocurrency industry self-regulatory rights. The Japan Virtual Currency Exchange Association (JVCEA), a platform that brings together 16 crypto-exchanges, will be overseeing the cryptocurrency industry. The FSA gave the alliance authority to regulate the industry, protect assets of customers and provide operating principles. The association will also give clear policies on anti-money laundering and outline appropriate compliance plans for the country’s cryptocurrency exchanges. “JVCEA sprung up as a result of multiple hacks of Japanese exchanges. We’ll see how this group interacts with the global crypto community to ensure all exchanges can secure their customer data,”  Joseph Oreste, founder of Qupon notes. Self Policies Previously, JVCEA proposed rules to ban trading ... Read More »

Key Benefits that Japan will Accrue after Regulator Approves Self-Regulation

  By David Drake   There is good news for cryptocurrency industry players in Japan. The country’s Financial Services Agency (FSA) announced that it has given its approval for the industry to regulate itself. This means the industry will now be able to provide guidelines on matters like safeguarding consumer assets and anti-money laundering policies to its 16 registered crypto exchange companies. The Japan Virtual Currency Exchange Association (JVCEA) will also have power to monitor and sanction exchanges for any violations. The approval comes after the 16 crypto exchange companies formed a united front and drafted an approval to the FSA for self-regulation. Even though the FSA will retain its oversight role on the industry, what could self regulation mean for Japan? Devolved Power The self-regulation concept contains varied opinions from stakeholders in the cryptocurrency industry. In this case, Japan’s industry will clearly be the winner because there is a ... Read More »

Japan’s FSA Hands Reins to Self-regulation Crypto Body

  By David Drake   The Japanese leg of the cryptocurrency movement has inched closer to a leading role when the Financial Services Agency (FSA) gave the green light for the industry to self-regulate. Japan was the first country to institute regulations for crypto-exchanges last year, and has since encouraged innovation in this industry. The Japan Virtual Currency Exchange Association’s (JVCEA) new status gives it the ability to not only monitor activities on the Japanese exchanges, but also to penalize exchanges for infringements. It is not yet evident what this means in the long run, or whether other countries with strong cryptocurrency environments will follow suit. The Crypto Journey Japan has maintained a strong crypto presence from the get-go. It has encouraged the use of this nascent digital asset, and has cultivated its use in various facets of the country. Since the rise of cryptocurrencies, Japan has welcomed crypto-based companies ... Read More »

How Japan’s Virtual Currency Exchange Association will better Tackle Hackings

  By David Drake   Genuine interest in digital assets has been increasing as consumers and institutional investors realize attractive investment opportunities offered by the distributed ledger technology. Despite this interest, there are concerns from potential investors that stem from risks such as hacks and fraud that have manifested themselves in the industry. Naturally, governments have stepped in to protect consumers from such vices by creating regulations which industry players are required to observe. Unfortunately,  efforts such as these have contributed to stifling crypto innovations within their jurisdiction and have led to companies shifting operations to countries such as Malta which have a more favorable operating climate. It is for this reason that industry players have come together to offer an alternative solution to governments through self-regulation. It was, therefore, good news when Japan’s Financial Services Agency (FSA) announced that it had given its approval for the cryptocurrency industry in ... Read More »

Will Japan’s Enhanced Crypto Regulations have a Positive Impact on Hacking?

  by David Drake     All over the world, cryptocurrency exchanges are becoming the target of hacking attacks. As a result, cryptocurrency investors have lost millions of dollars and this has affected their confidence in the crypto market. In the past, and most recently Japan’s crypto exchanges, have especially been largely affected by hacking which resulted in the loss of large amounts of money. In January, Coincheck Japan was hacked and $523 million worth of NEM cryptocurrency stolen from wallets in the exchange. Most recently, Zaif a Japanese cryptocurrency exchange lost an equivalent of  $60 million in virtual coins. To address these challenges, Japan’s regulator, the Financial Services Agency (FSA) has introduced new measures to counter the hacking problem and make cryptocurrency trading safer for investors. The regulator has introduced new requirements for cryptocurrency exchanges that include provision of records of meetings by new crypto exchanges showing how decisions are ... Read More »

Japan Tightens Regulations for New Crypto-Exchange Applications – Will It Reduce Hacking Incidents?

  by David Drake     Investors play an important role in growing the cryptocurrency industry and mainstream adoption of virtual currencies and blockchain technology. It is for this reason that Japan’s financial service agency (FSA) announced additional regulation measures as part of the new screening process for registration of cryptocurrency exchanges. Japan’s new move comes at a time when blockchain backed solutions are being built across the globe. Some interesting solutions include family smart contracts platform, URAllowance and mortgage lending, digital coupon marketplace, Qupon and investing platform for mortgage backed securities, HFC Coin. Others are social media security platform, ONe Network, interactive marketing platform, Noiz Chain and portfolio optimization platform, Live Tradr. New Regulations Japan has been one of the major players in the global cryptocurrency space. However, its history has been stained by two big data breaches that hit Mt. Gox and Coincheck cryptocurrency trading platforms. To address this problem, Japan’s FSA holds that the new measures will ensure ... Read More »

Traceable Cryptos Not Wanted in Japan’s Exchanges, Here’s Why

  by David Drake   The financial regulator in Japan is working quietly to reduce cybercrime associated with cryptocurrencies. The Financial Services Agency (FSA) is hoping to persuade cryptocurrency exchanges to quit handling digital currencies largely preferred by criminals who are out to launder money and engage in other criminal activities, including terrorism. Sources that are close to the regulator confirmed the agency is taking action to discourage trading of altcoins such as Zcash, Monero and Dash. These cryptocurrencies are not easy to track which is why they’re largely preferred by the underworld. Even so, Luis Manuel López, General Coordinator at Workchain Centers, feels this isn’t the real problem. He says: “The use of these cryptocurrencies to fund illegal activities is a challenge that Silk Road and Bitcoin had to face six years ago. However, the measures taken to address it should not be limited to tools of payment that criminals ... Read More »

How Crypto-Related Cybercrime Should Be Fought

by David Drake   One of the main features of cryptocurrencies is anonymity. However, this has its dark side, and this is currently one of the major concerns in the cryptocurrency industry due to its linkage with cybercrime. In anonymous cryptocurrency trading, traders do not have to verify their identity or provide personal details. They can open virtual bank accounts and make transactions using digital currencies. This anonymity has made the industry an easy target for scammers, hackers, terrorists, criminals and gangsters. To address this problem, Japan’s Financial Services Agency (FSA) has decided to pressurize cryptocurrency exchanges to delist anonymous cryptos. For many people in the cryptocurrency space, this is neither the best nor a lasting solution to crypto-related cybercrime. In the recent past, we have witnessed big corporates, including banks, get hacked, losing billions of dollars or personal details of millions of customers in the process. Most of these hacking ... Read More »

Will Japan’s Efforts to Halt Trading of Dash, Zcash and Monero Succeed?

  by David Drake   The financial regulator in Japan, Financial Services Agency (FSA), has been quietly advising cryptocurrency exchanges in the country to quit trading Zcash, Dash and Monero. The three cryptocurrencies are seen to be favoured by money launderers as well as others who engage in criminal activities. The decision to discourage cryptocurrency exchanges from trading in these altcoins is largely informed by a report released by Europol last year. In the report, Europol indicated that these altcons are among the prefered digital coins of underworld participants because they are not easy to trace compared to currencies such as bitcoin. Real threats In the past, Monero has been targeted in cryptojacking attempts with hackers causing malware infections on computers in order to hijack their CPUs and then use them for mining the digital currency. But will ceasing their trading address the problem of cyber crime that has become ... Read More »

Will Dropping Some Currencies from Exchanges Reduce Crypto Cyber Crime?

by David Drake   According to Forbes, Japan’s Financial Services Agency (FSA) has quietly been pressuring cryptocurrency exchanges to stop trading digital currencies that tend to be favored by underworld users. The FSA argues that currencies such as Monero (XMR), Zcash (ZEC), and Dash (DASH) are ideal for money laundering because it is extremely difficult to track them and identify recipients. A shift in coin usage In February 2018, the European Union Agency for Law Enforcement Cooperation (Europol) raised red flags when criminals started shifting from bitcoin to altcoins which provide higher privacy levels. Europol linked the shift to increased monitoring of bitcoin by police forces and rising regulatory pressure against money laundering on the cryptocurrency. Luis Manuel López, General Coordinator of Workchain Centers holds that FSA is aligning its operations to concerns raised by Europol. In his view, the use of private cryptocurrencies has a negative effect on the market, especially crypto exchanges ... Read More »

Scroll To Top