The Ban on the Circulation of Anonymous Cryptocurrency Will Be Issued in Japan

japan crypto

Cryptocurrencies with a high degree of anonymity will be banned starting from the 18th of June. This is reported by the Japanese Financial Security Agency (FSA).

It is expected that the new regulation of the cryptocurrency industry will affect the trade and turnover of such digital coins as Monero (XMR), Dash (DASH), Augur (REP) and ZCash (ZEC). This ban is necessary to eliminate illegal activities within the market of cryptocurrencies. The decision was made after the hacking of the Coincheck exchange and the theft of $400 million in NEM. The difficulty lies in the fact that confidential coins can not be tracked due to their main feature. This excludes the possibility for the authorities to find hackers.

Despite this, the authorities have justified reasons why they have imposed a ban. In addition, that cryptocurrencies are self-regulating, stable and decentralized, they attract many by their anonymity. However, the anonymity of coins reduces investor interest in some projects that use cryptocurrency of this type. Moreover, cryptocurrency exchanges have the right to refuse startups in the listing that want to conduct ICO.

We remind you that Japan is one of the first countries that have begun to introduce bills regulating cryptocurrencies. Cryptocurrencies were legalized in the Land of the Rising Sun in the spring of 2017. We want to point out that the decision taken by the regulator will affect the government and each existing exchange.

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