Two Japanese Crypto Exchanges Withdraw Applications To Operate

John Medley
  • Tokyo GateWay and Mr. Exchange have voluntarily withdrawn their applications to operate as crypto-asset exchange in Japan
  • Japan's Financial Services Agency have been enforcing higher security standards for all crypto-asset exchanges in the wake of the Coincheck hack

Since the infamous Coincheck hack in January that saw over $500 million in NEM stolen, Japan’s FSA (Financial Services Agency) has started improving the security of crypto exchanges. Nikkei reported on Thursday that two crypto exchanges in Japan have withdrawn their applications to operate.

Contrary to misleading articles, Tokyo GateWay and Mr. Exchange have voluntarily withdrawn their applications to operate as crypto-asset exchanges in Japan.

It is thought that Tokyo Gateway and Mr. Exchange had insufficient security procedures and standards making it highly unlikely that they would have met the FSA's stricter requirements. Making an application to operate a fruitless endeavour.

The FSA ordered all crypto exchanges to improve security in the wake of the Coincheck hack. Two exchanges -  Bit Station and FSHO - were suspended for 30 days and 5 exchanges - Tech Bureau, GMO Coin, Mister Exchange, Bicrements and Coincheck - had to conduct a full security audit and provide a “Security Improvement Plan” by March 22nd.

Japan’s Crypto Markets Mature Under FSA Guidance

Despite the numerous reports of Japanese exchanges being forcefully closed down the reality is different. The FSA has imposed security standards to help prevent Coincheck or MtGox style hacks. A process that has fortunately identified several security flaws in numerous exchanges. These exchanges have been left with a choice of improving security or shutting down. It is the FSA’s hope to mature the crypto market and improve standards.

As the volumes of crypto-asset trading falls and competition ramps up, the crypto exchange business model is becoming less lucrative. Analysts expect the number of exchanges to drop and the market to consolidate around a small group of exchanges. However, it is thought to be a positive progression for the market improving liquidity and security.

Fiat Currencies May Be Gone by End of Year, Says GoldMoney Research Head

Michael LaVere
  • GoldMoney Insight's head of research Alasdair Macleod argues traditional fiat may not survive the end of the year.
  • Macleod says the Federal Reserve's massive printing scheme in response to coronavirus will destabilize the currency. 

GoldMoney Insight’s head of research Alasdair Macleod says that fiat currencies may be gone by the end of the year. 

Speaking in an interview with RT’s Kesier Report, Macleod claimed that traditional fiat currencies would struggle to make it through the unstable markets generated by the coronavirus pandemic. 

He said, 

We have come up with a very real crisis.

Macleod argued the U.S. Federal Reserve has been maintaining a false level of value in government fiat currencies and securities over the last several decades, which is now being called into question in light of the ongoing economic meltdown. 

He continued, 

And that false level of value in financial assets as a whole is beginning to fall apart; the Fed is losing control.

The research economist explained that fiat-printing in the US and around the world has been accelerated in order to provide “quantitative easing” to the global economy. 

Macleod concluded, 

By the end of this year we should not be surprised to find that not only has the whole industry of financial assets collapsed, but the fiat currencies have gone with it.

On Wednesday, the US Congress and White House announced an unprecedented $2 trillion package to provide economic relief to businesses and families impacted by the virus. 

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