Financial Services Agency of Japan Bans Anonymous Cryptos
Coincheck Says No to Monero and Others
Coincheck, one of Japan’s largest cryptocurrency exchanges, has announced that it is not going to allow Monero, Zcash, Dash, and Auger to be traded on its exchange any longer. This has occurred as Japan’s FSA, Financial Services Agency, has increased internal obligations on cryptocurrency exchanges and made it clear the prospects of more severe regulations lurk regarding all ‘private’ cryptocurrencies, meaning cryptocurrencies offering anonymous use – and Coincheck has reacted.
Cryptos such as Monero, Zcash, Dash, and Augur among others could continue to be hit via the growing regulatory climate. The FSA no doubt wants the ability to be able to scrutinize the identity of traders in an effort to potentially collect taxes.
However, they are certainly also concerned about the illicit use of cryptocurrencies which allow users to make transactions under a veil of darkness. The FSA is particularly focusing on stemming illegal payments via criminal activity, and the hacking and ransomware subculture which in theory makes using anonymous crypto easier to escape investigative eyes.
Private Cryptocurrencies under Pressure via Government
Traders who were alluded to cryptocurrencies because of their ability to be use coins anonymously over the past couple of years have dealt with the increasing fact globally, their real identity has become commonly demanded.
And traders who used cryptocurrencies as a way to profit from the growing value of the industry without the oversight of governments have found out they are not exactly working in the shadows anymore. In the U.S the Internal Revenue Service has made it clear they have the ability to track identities and expect to collect taxes on profits made while trading cryptocurrency.
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Japan is a Leader within the Regulatory Vanguard
Japan is a leader in cryptocurrency regarding use and their trading. And the Japanese government is at the forefront of jurisdiction as their regulatory environment is watched and mirrored by others.
The possibility that anonymous coins may increasingly be put under pressure because they may lose the ability to be traded by the leading cryptocurrency exchanges should be monitored, along with their values.
The exclusion of these cryptocurrencies also raises the bar in a way for the advent of more KYC regulation and AML laws to become part of the vanguard. In the United States, Europe and many parts of Asia ‘Know Your Client’ due diligence is an integral part of cryptocurrency compliance and being able to trade nowadays.
A recent statistical report from Japan’s FSA estimated that there are approximately 3.5 million people in Japan who trade cryptocurrencies.
Yaron Mazor is a senior analyst at SuperTraderTV.
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