According to a report that was recently released by Forbes, Japan’s Financial Services Agency, the FSA is working diligently to ban three popular cryptocurrencies within the country due to their frequent use of pirates and hackers. Still, despite this threat looming over the world of cryptocurrency, market prices remain stable.
A Tool That Promotes Piracy
The cryptocurrency that the FSA is looking to ban are Zcash, Monero and Dash. According to Forbes, anonymous sources have reported that these cryptocurrencies are extremely difficult to track making it nearly impossible for the FSA to regulate the transactions made with these currencies. Furthermore, this makes them a popular tool that can be used to abet internet piracy.
The FSA has officially ruled that these three cryptocurrencies are a safe haven for internet hackers who can easily use them to finance illegal activities such as tax evasion and money laundering. As an example, one could state the recent criminal activities that took place in Japan earlier this year when Coincheck, a massive and very popular exchange platform suffered a cyber attack that saw hackers get away with roughly 500,000,000 NEM tokens.
Another interesting fact is that Coincheck was one of the exchange sites that made use of all three of these cryptocurrencies. Then, after the hacking, due to a request from the FSA, the platform simply walked away from using Dash, Zcash and Monero.
Furthermore, the Financial Services Agency also issued at formal warning to other platforms that are looking to use these three types of cryptocurrencies. While they may still be allowed to operate, the use of these cryptocurrencies could result in a much slower approval process.
The Other Suspects
Of course, while there is no solid evidence condemning these cryptocurrencies of doing anything wrong, there are other reasons that have raised warning flags within the FSA.
After the massive heist that took place on Coincheck, another platform known as MyEtherWallet was the victim of another cyber attack that saw losses of $150,000 in Ethereum. And, according to some speculation, this sum was then traded on the Binance platform and could have easily contained the 500,000,000 NEM tokens from the Coincheck hacking.
Therefore, the Japanese government has ordered Binance to cease and desist all operations within the country’s borders. The company was also issued a formal warning that they would face criminal charges if they did not comply with the order.
Low Trade Volume
Despite the complexity of the situation, it should be noted that Zcash, Monero and Dash are far from being the most popular cryptocurrencies on the blockchain. The trio average somewhere in between 5,000 and 10,000 total transactions daily, which is paltry compared to Ethereum which records an average of a million trades per day.