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Japan FSA strengthens cryptocurrency exchange regulation to prevent another heist

Arjun B

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Financial Service Agency of Japan strengthens cryptocurrency exchange regulation
Source: Max Pixel

The Financial Service Agency of Japan [FSA] strengthens cryptocurrency exchange regulation in the country. FSA has announced stricter regulations for cryptocurrency exchanges to prevent another heist like Coincheck’s. FSA is going to be using a tighter cryptocurrency exchange laws from this summer.

The FSA of Japan has said that from this summer onwards they would be using an improved, stricter framework for registered cryptocurrency exchanges as to keep up with the growth of technology. All the users who are going to be registering in the exchange would also have to follow the new rules.

After discovering the new age digital currencies, the government of Japan has shifted focus to strengthening consumer protection. The FSA of Japan does not want their citizens to be part of online payment fraud. They mainly want to prevent another heist.

The requirements which are being made important by the FSA this summer is to prevent money laundering. The FSA is asking to keep verification of the identification of users to keep track of their transactions and exchanges.

The second requirement put forward by the FSA was to keep customer assets separate from exchange assets. The trading exchanges should closely monitor the accounts of users of the exchanges.

Even the exchanges must keep a set of rules and regulations to prevent offices from using the client’s money. The exchange will only be allowed to trade with a certain set of trading pairs involving a set of cryptocurrencies.

FSA would not grant much anonymity because that would help criminals to do money laundering. There shall be tighter administrative rules in the exchanges to prevent manipulation of transaction information and exchange data for personal gains.

The registration of exchanges in the FSA start by the operators submitting documents which are required. After the clear review of the documents, the FSA inspectors will visit the exchanges to examine the initial screening of their operations and verify the number of employees working in the exchange.





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Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

Priya

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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