Japan’s Financial Services Agency (FSA) wants to continue its fight against money laundering. Private cryptocurrencies are targeted by the regulators.
The Japanese FSA continues against anonymous cryptocurrencies. Most affected are the Altcoins Monero (XMR), Zcash (ZEC) and Dash (DASH). Under the pretext of preventing money laundering, the FSA takes all available steps to prevent the use of these currencies. Especially in the underground, the Privacy Coins are popular.
Mentioned cryptocurrencies (XMR, ZEC and DASH) each use different mechanisms to hide transactions on their blockchains. Monero uses stealth addresses, ring signatures, and ring-confidential transactions to anonymize all transactions by default. In Zcash anonymity can be achieved with so-called shielded transactions. Also Dash offers the optional function “PrivateSend” to disguise transactions via CoinJoin. Ultimately, the result is that it can not be determined who sent how much money to whom. Consequently, monitoring and ensuring compliance regulation becomes difficult to impossible.
Transparency of other cryptocurrencies such as Bitcoin and Ethereum allows an analysis of payment transactions. If an actor links his true identity to his Bitcoin pseudonym, independent observers can track the flow of money.
For Japanese Exchanges, it is important to be registered with FSA as licensed Exchange. With this license, FSA puts crypto banks under pressure: Those who have listed Monero & Co. are unlikely to receive the license.
The Exchange CoinCheck was in trouble in Janaur after a hack. As a result, CoinCheck announced in mid-March that they would suspend transactions in currencies they mentioned. However, private cryptocurrencies are not yet completely banned.
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Categories: Crypto Currency