Authorities in Japan have switched their attention to cryptocurrency exchanges in a push to regulate the sector. The Financial Services Agency has asked the exchanges to delist anonymous privacy altcoins like Monero (XMR), Zcash (ZEC) and Dash.
Privacy Coin Headaches
Tasked with the responsibility of granting licenses to cryptocurrency exchanges, the FSA has recently ramped up its crackdown on privacy related altcoins used for anonymous transactions. A point of concern is that the virtual currencies. They are hard to track compared to Bitcoin and Ethereum and are being used to fuel crime in the underworld.
Monero is one of the cryptocurrencies that continues to wreak havoc in the crypto sector. It has emerged as hackers preferred cryptocurrency of choice. Scammers engaging in “cryptojacking” attacks are known to use the cryptocurrencies to complete fraudulent activities.
Cybercriminals have resorted to using these altcoins when demanding ransom payments or engaging in the sale of illegal goods. There is already concerns that Monero and Zcash could be used for money laundering, too.
The FSA, says it has become difficult tracking recipients of anonymous currencies on a blockchain or public ledger. Tracking the trail of money in a bitcoin ledger is possible, but privacy altcoins have proven difficult.
The FSA is standing strong against Monero after it emerged that North Korea might be mining it.
Privacy Coins Delisting Push
Though there isn’t official prohibition on privacy coin trading, the FSA crackdown is already having an impact. Coincheck, one of the cryptocurrency exchanges experiencing hackers’ wrath, is the latest to heed the Agency’s advice. Coincheck has delisted Monero as it continues to push for a license of operation from the FSA.
Cryptocurrency exchanges in the Island Nation have formed a self-regulatory body as they look to address some of the risks associated with handling certain altcoins. The agency will have enforcement power over members of the organization.
The body is tasked with the responsible for curating a whitelist of cryptocurrencies that members will be allowed to list. Should the agency succeed in enforcing the kind of cryptocurrencies that exchanges are able to list, then the FSA will have its work cut out for itself.