The Japanese regulators are beginning to monitor the cryptocurrency users

June 27

​​​​​​​The credit agencies together with the government will try to identify the communications between large cryptocurrency operators and the criminal syndicate of Japan.

The order of the Financial Services Agency of Japan (FSA) that since June 18 prohibits the turnover of anonymous cryptocurrencies Zcash, Dash and Monero in the country has come into force since last week. One of the main reasons for the ban was the possibility of using such coins for criminal purposes as well as the fact that the mechanisms of anonymous cryptocurrencies became the main obstacle in the investigation of the high-profile hacking of Coincheck.

The activity of the regulator did not limit to it. The subsequent instruction to six cryptoexchanges to debug their business processes caused a slight panic on the market that contributed to Friday's fall. On Monday the Japanese authorities announced that credit agencies would evaluate their users in order to increase security measures in the field of cryptocurrency. It is reported by CCN.

Now the Japanese Credit Information Service in conjunction with credit agencies and the companies engaged in information security research will cooperate with the government. Under the control of all these institutions there will be suspicious accounts and the users trading by large volumes of digital assets. In parallel the authorities will monitor the citizens suspected of having contacts with criminal and terrorist organizations and there are some reasons to believe that these two sets will intersect. But confidential personal and financial data will be provided to local authorities only if there are good reasons to suspect the specific individuals of illegal activities.

This decision appeared after the series of media reports suggesting the theft of millions of dollars by the criminal syndicates of Japan carried out with the help of cryptocurrencies.

«By providing the personal information of suspicious individuals including credit scores and financial data, the government hopes to protect investors and improve the security of the cryptocurrency industry», − the chairman of Japan Credit Information Service Yizumi Nobuhiko said.

Despite the fact that many participants of the Japanese cryptocurrency market are not happy with the tightening of supervision, the most analysts believe that it will positively affect the market and contribute to its recovery and transition to a legal field. Cryptoexchanges are recognized as the main weakness of the system because their internal control and security systems were repeatedly tested by attackers. Bringing the principles of their work to the compliance with the requirements of the law and the considerations of cybersecurity will be the focus of regulators in the coming months.

BN
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