The Agency of Financial Services of Japan suspended the work of two crypto-exchange exchanges - FSHO and Bit Station.
The regulator required the platforms to improve their internal security systems. In addition, the Agency has ordered five more stock exchanges - Tech Bureau, GMO Coin, Bicrements, Mr. Exchange and Coincheck - to provide by March 22 a plan to improve security.
Recall, in February it became known that the Financial Services Agency of Japan will check 32 local crypto-exchange exchanges for compliance with all standards relating to security systems.
The regulator required the platforms to improve their internal security systems. In addition, the Agency has ordered five more stock exchanges - Tech Bureau, GMO Coin, Bicrements, Mr. Exchange and Coincheck - to provide by March 22 a plan to improve security.
Recall, in February it became known that the Financial Services Agency of Japan will check 32 local crypto-exchange exchanges for compliance with all standards relating to security systems.
These are the types of moves that I think we need to say from regulators across the whole of the world. As we saw with Binance yesterday, no exchange is safe from being targeted and strict and proper security measures not to be put in to place to protect customers funds. It's funny how I saw some news outlets reporting this negatively when really it is Japan taking steps to strengthen and improve the cryptocurrency market.
Totally agree with you. What FSA is doing is a great step for cryptocurrency interests, and it is what lots of us were claiming for a long time: regulation.
Let’s say that you have different cryptocurrency exchanges to choose. If you know that FSA is controlling to make sure that they are safe, which one are you going to use? the one that FSA is shutting down or the one that they give the approval? Continuing with that. If the cryptocurrency exchanges experience that they are losing users because public is not trusting them, then they will start to apply good practices so the public return to them.
This article explains that hipotesis in a very clear and simple way:
https://www.forbes.com/sites/adelsteinjake/2018/03/08/japan-shuts-down-two-cryptocurrency-exchanges-but-it-may-be-good-news-for-the-industry/#5dce9d67359d
Exactly right and these current moves by Japan are not even ones that harm users in any way. They're not moves for stricter regulation in terms of KYC or AML, they are simply around security of the exchange. Once we pass through these difficult times in the next year or so of tougher regulation coming in to place the whole crypto market will be stronger and can grow off a strong and secure platform.
There is currently lot of FUD. It's all none sense though.
For example few days ago SEC (USA) said same, they want MORE security / regulation, they're not banning / shutting down anything... But crypto news websites and what not said it's end of crypto... HAHA and weak hands selling off like mad (easy money btw, thanks).
The SEC news is a little different in its nature. It means stricter controls for people looking to buy and sell cryptocurrency which many see as being a move towards more centralization. The Japan news is not related to trading and regulation around that, it is just ensuring that the exchanges are well protected so that funds are safe.
