Japan is known as one of the most cryptocurrency-friendly countries on earth. Its community is very active in the crypto market, and several enterprises operate from there. But nine Japanese exchanges have already suspended their operations. Why? Because they do not comply with the local regulations.
Japanese Cryptocurrency Exchanges Closed
Some Japanese crypto exchanges are halting their operations due to the fact that they do not comply with the regulations imposed by the Japanese Financial Services Agency (FSA). The FSA is carrying out inspections in virtual currency exchanges in order to have control over the market.
It is important to remember that the FSA decided to have a more active regulatory activity since Coincheck’s hack and Zaif’s glitch. Coincheck has been hacked, losing 523 million NEM, while Zaif presented a glitch that allowed individuals to purchase Bitcoin for free.
Now the FSA issued a business improvement and suspension order to the crypto exchange Dream Japan Co. Ltd. Between April the 11th and June the 10th, the crypto exchange must halt all its activities related to the exchange of digital currencies.
Blue Dream Japan commented:
“We will solemnly accept the business suspension order and business improvement order. We hope to continue our virtual currency exchange business in the future after conduction thorough compliance with laws and regulations and improving the management system so that we can provide services that users can use with confidence.”
In this way, 9 crypto exchanges have suspended their operations so far. The businesses affected by the FSA’s investigations are Bit Station, Mister Exchange, Bitcrements, FSHO, Coincheck, Lastroots, Eternal Links, Blue Dream, and Campfire.
Japan is trying to improve its regulatory framework by controlling that the exchanges are operating under the current rules. Additionally, some exchanges decided to self-regulate themselves in order to create a more secure environment for investors.
Japan Crypto Nation
Japan has been dubbed crypto nation due to the friendly approach that the government had towards cryptocurrencies and similar assets. At the moment, Japan is one of the biggest trading hubs in the market with the United States and South Korea.
One year ago, in April, Japan passed a long discussed law that recognized Bitcoin and other virtual currencies as a means of payment.
The country distinguishes itself from neighbouring countries like China or South Korea, where hard restrictions have been imposed. This situation has attracted several companies from those countries that were not able to proceed with their operations.
Moreover, Japan’s GDP increased 0,3% in the last year solely due to cryptocurrencies. In a stagnant economy like the one that Japan has, it has been an important boost for different sectors of the country.
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