Nations and governments around the world have proven to be mostly against cryptocurrencies and their applications, usually in fear of illegal activities such as terrorism funding, money laundering, and purchasing of drugs. Lawmakers in certain countries have been more accepting and open about the blockchain technology and digital currencies. These include Israel and Venezuela. However, some government officials have been extremely harsh on numerous occasions. This is the case for countries like China, Japan, and some European Union member states. Today, Japan is back in the news as they have given punishment notices to seven cryptocurrency exchanges.
On Thursday, reports that the Financial Services Agency in Japan had sent warnings and notices of “punishment” to seven digital currency exchange have surfaced. In addition, the Japanese government agency has suspended trading activities for two virtual currency exchanges. The regulatory agency has requested that these exchanges regulate their activities and improve their business practices. The targeted ones have not been respecting the laws and regulations in place set by the Japanese government.
Ever since Coincheck has been hacked, the Japanese government is extremely wary of cryptocurrencies and wants to avoid another issue at all costs. Furthermore, the complicated history of Mt. Gox leaves lawmakers and officials very skeptical and naturally gives them the right to adopt a regulative and preventive approach. Coincheck is also one of the seven exchanges that are concerned by these notices. Bit Station and FSHO are the two other platforms that will be suspended for a month, for various reasons. The first company is accused of having an employee using customers’ bitcoin for his own benefit. Bit Station will also withdraw its application to become a registered exchange. There are over 100 Japanese exchanges currently waiting to be approved by the FSA.
TLDR: The Japanese Financial Services Agency has given punishment notices to seven cryptocurrency exchanges, requesting that they regulate their business and comply with the laws in place. Furthermore, the agency has suspended two exchanges for a month.