Japanese Crypto Crackdown as Bitcoin Slump Intensifies

Bit Station and FSHO, two crypto exchange platforms in the country, were suspended by the Japanese government last Thursday

Bitcoin is experiencing a particularly volatile period. The price has been shaky in the past couple of days, and more recently, it’s been experiencing some significant downward price action. Amongst the recent lousy news driving crypto markets downwards was more comment for the SEC and some news from Japan.

Cypher Capital Data Scientist Nick Kirk said that the sudden drop in the value of Bitcoin caught him off guard, implying that no one expected it to happen so soon. The SEC hearing about regulating cryptos might be to blame, but he added that a number of different factors might be to blame.

Nonetheless, Kirk said that regulation is still a good thing for cryptocurrencies as this will lessen their volatility. Bitcoin’s latest slump started last Wednesday after news broke out that there were compromised accounts on a Hong Kong-based exchange.

There was also the recent comment made by the SEC which further criticized cryptocurrencies. As influential as these incidents may be, some analysts are still confident that the slump is caused mainly by the Japanese exchange crackdown.

Japan is known to be one of the countries that are tolerant of digital coins. However, the recent happenings might suggest otherwise. Bit Station and FSHO, two crypto exchange platforms in the country, were suspended by the Japanese government last Thursday. The FSA demanded that the trading platforms must improve their security procedures and submit a written plan of improvement.

This comes after over $500 million worth of digital coins were stolen from Coincheck by hackers in January. As a result, Japan implemented strict policies to protect crypto users from situations like these. Fortunately, Coincheck could refund their clients.

There was also a recent report about accounts on Binance, a Honk Kong-based crypto exchange, being compromised. The reports said that the crypto accounts were breached through phishing.

The newly implemented strict crypto policy of Japan might be a setback for the community, but it can pave the way to control the industry and protect users from criminal activities. The value of Bitcoin might also have dropped, but with it comes the intervention of an authority whose aim is to make cryptocurrencies safer and more convenient for everyone.

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