According to sources close to the case in a report released by Forbes, the Financial Services Agency of Japan (FSA) is working hard, to ban three virtual currencies on the lands of the Empire of the Rising Sun. Officially, the reason given would be their frequent use by pirates.
Despite this terrible threat hanging over the anonymity channels the prices of its crypto-currencies remains stable.
Suspected of being a bridge to piracy
The three currencies affected by these negotiations led by the FSA are Dash, Zcash and Monero. According to sources that remained anonymous, but whose words were published by Forbes, these three virtual currencies are not easy to track. In other words, it is almost impossible for the Japanese financial authorities to order a follow-up of the monetary transactions made with these currencies, thus making the fight against the financing of terrorist activities complex.
Therefore, the FSA has ruled that these currencies could be a haven for hackers who use them very often to commit their crimes. This position of the FSA is further strengthened by the latest cryptocurrency activities in Japan. As early as the beginning of this year, Coincheck, a semi-public cryptocurrency company, suffered a hacking costing nearly half a billion NMS; the NEM being its virtual currency.
It should also be noted in this regard that Coincheck was among the platforms that made use of the three virtual currencies incriminated by the FSA. Following this loss, and at the request of the FSA, Coincheck simply turned its back on the use of its three anonymous cryptocurrency. In addition, in its publication, Forbes suggested that the FSA has issued a warning to new platforms that would venture to offer these three cryptocurrency the opportunity to continue their business in Japan. According to the FSA, this act could simply compromise their approval process in Japan.
Other suspicions of misappropriation
Even if for the moment nothing proves it, the inability to follow the transactions made with Dash, Zcash and Monero, allows the FSA to easily get angry with them. Indeed, following the half billion of NEM stolen in Coincheck, another platform, MyEtherWallet, suffered a loss of 150 000 dollars of ethers. According to the hypotheses formulated by the investigators, this sum, which would have been sent to the Binance platform, would contain half a billion NEM that was stolen from Coincheck.
It is in this context of crisis of confidence that the Tokyo government has ordered the Binance platform to stop its activities in Japan. The FSA also told Binance that she would face charges of criminal activity if she did not comply. For the moment, no document or publication exactly mentions Binance’s reproach.
Low transaction rates...
Despite the magnitude of the damage, it must be admitted that the three virtual currencies that are in the sights of the FSA are very far from recording the highest rates of financial transactions in the world of cryptocurrency. They record between 5,000 and 10,000 transactions per day. Which is not very significant next to the million Ether transaction and more than 200,000 for the famous bitcoin.
In addition, the Dash, Zcash and Monero do not all benefit from the same level of encryption. It turns out that of the three currencies, the Dash is the one that offers the lowest level of encryption, followed by the Monero. Therefore, the Zcash is the one that offers the most complete anonymity.