KuCoin, the Hong Kong based cryptocurrency exchange has announced on Twitter that they will stop trading services in Japan. KuCoin is the second exchange which will stop trading services for Japanese investors, the first being Huobi. It was reported earlier that Huobi informed its Japanese investors via email that they’ll stop trading services from July 2nd. While Huobi did not provide a reason, KuCoin said that it’ll stop services “out of respect to Japanese legislation requirements”.
While it’s still a crypto friendly nation, Japan is introducing stricter guidelines for all digital currency exchanges across the nation. Coincheck, a Japanese cryptocurrency exchange became a victim of a hack and as a result lost $400+ worth of cryptocurrency
This instance prompted the Japanese Financial watchdog, FSA to bring in more stringent security measures in the cryptocurrency industry. According to the money transaction law introduced in 2016, exchanges should register themselves with the Financial Services Agency (FSA). World renowned crypto exchange Binance had been served with a warning from the FSA earlier this year. It warned the exchange that as a foreign entity, they were offering trading services to Japanese residents without a license.
According to the FSA’s guidelines, the exchanges shouldn’t store any digital currency in their online wallets. The exchanges should have two factor authentication for all transfers, this ensures that unauthorized people can not transfer any coins.
All exchange platforms must follow best practices for asset management and they will not list certain kinds of cryptocurrencies. The latter rule applies for privacy coins or coins promoting total anonymity and they will no longer be listed. These coins, according to the FSA might give way to money laundering.
A mechanical engineer turned journalist, Shekar takes a keen interest in the study and analysis of cryptocurrencies and blockchain strategy. With the cryptocurrency world blooming in the recent days, he finds great interest in monitoring their growth and gathering every possible piece of information about them. He works as a crypto-journalist for the website Penguincoinforum.