The Battle Goes On!
We have often covered the agenda or war against cryptocurrencies and the efforts to contain the inevitable growth of the blockchain sector.
It’s also no secret that governments and regulatory agencies are dedicating entire divisions to specialize in tracking and gathering data on cryptocurrency users, otherwise known as blockchain analysts.
Japan and the U.K. have recently begun to show stricter opinions, and while there has been a positive embracement overall, some firmness is beginning to show as the technology continues to emerge and mature.
Tougher Actions or All Hot Air?
The Financial Conduct Authority (FCA) issued British investors warnings regarding two popular cryptocurrency companies this week, Local Bitcoin Ltd and BK Coin, which do not have the necessary licenses to operate in the U.K.
With the firmer stance potentially due to the coming discussions between European finance ministers regarding the rise of cryptocurrencies, talk of new laws and what digital currencies should be classified as may be back in the headlines.
The FCA recently sent a letter to multiple bank CEOs stating that banks must take “reasonable and proportionate measures.”
Being one of the countries with the highest amount of registered crypto exchanges, the United Kingdom has been watchful over the widespread popularity and growth of blockchain-driven assets, with some incidents of arrests based on theft of funds and money laundering.
In Japan, the Financial Services Agency (FSA) has raised the bar for the registration process of cryptocurrency exchanges based around risk management and user safety.
Back in May 2018, the FSA outlawed popular privacy coins Dash, Monero, and Zcash due to “bad actors” favoring the coins because of the anonymity features provided (transaction mixing and encrypting transactional information).
Japan seeks to be a blockchain and cryptocurrency powerhouse, rivaling and potentially overtaking neighbor China’s dominance in the sector. One of the biggest banks in Japan is a leading investor in Ripple, and Bitcoin is a legal form of payment in major retailers across the country.
The country has had considerable experience with cryptocurrency exchanges being compromised over the years. The notorious Mt. Gox attack and the recent theft at Tokyo-based Coincheck Inc. likely influenced the recent tightening of registration requirements.
An overall roadmap is clearly being drawn and played out by those with the power and capital to influence. We will keep you posted on the latest developments in regulations surrounding cryptocurrencies!
Always conduct sound research before investing.