Bitcoin Forum

The increased regulations by the once crypto favourable Japan will affect the crypto investors and market negatively.

Read more: https://coingape.com/two-japan-cryptocurrency-exchange-shutdown/

Reading the reasons why these exchanges have decided to close I disagree with the conclusion that this will negatively affect the market, these exchanges are required an improvement in their internal controls and data security, if the exchanges can't do this then it's better that they are not working

I don't see why forcing these exchanges to improve their security is a bad thing. If there's anything this move promotes, it's actually the security and carefulness of exchanges since they're handling other people's money. This is also helping the cryptomarket mature since the government is helping out the exchanges to do the necessary things in order to prevent hacks. Most of the time, these exchanges get 'hacked' because they aren't regulated by the government and all they need is a license to operate and that's prretty much it.

Another misleading article... Exchanges should be more regulated and should follow up the rules of security and other things. You can't expect people to trade on some shady exchange where there is high possibility of losing funds. After the NEM hack they are slowly seeing how exchanges are badly secured. Honestly I agree with the fact for more regulation, even some people will like the idea of exchanges filling the standards provided by their country and might even think to invest into crypto if they feel safe.

Good news, Actually this is a good move from the Japanese Authority to maximize the security of crypto users in particular. Maybe Mr.Exchange and Tokyo GateWay have not been able to respond to the request of the Japanese authorities so chose to close its crypto trading

from the news I got the biggest cryptocurrency theft in the world has happened in Japan. Hackers managed to stir 380 million pounds of cryptocurrency is less famous than one of the digital exchanges in the State Sakura it. Coincheck, based in Tokyo, said about 523 million coins inevitably affected the cryptocurrency market dropped dramatically in March 8)

In fact, Japan already has a lot of decriminalized exchanges, so it is perfectly normal to close some exchanges.
Because it involves the security of customers' money, some small exchanges are not up to scratch.

 I think japan making lots of strategy to pull down bitcoin price soon japan will be the largest holder of bitcoin in the world . So they are dumping the coin to grab more who is still having faith they will grab more .

Japanese are known for it's high technological advancement and it is just fair to say that bitcoin is a good partnership to their transactions. It is secured, easy and for sure many high profile personalities would love to use bitcoin in their transactions to stay hidden so i think all in all this is just a marketing stratergy for them to lessen the bitcoin value and so that they can buy it a lower cost.

not really!
in fact everything about the regulations in Japan have been good so far. the exchanges need to be regulated but you seem to have forgotten how many of these exchanges have scammed their users so far and gotten away with it simply because nobody were watching them.
and  some exchanges (which apparently plan to scam in the near future) that are not happy with these regulations only prove that we as the community should also force them to comply with these regulations and don't let them get away with it.

I totally agree, I often say this, Governments need to be implacable with the exchange, and it is unacceptable that many exchange do not have a phone number and a physical office and do not have a license that allows them to operate. we are talking about exchange that moves millions of dollars, but they want to remain anonymous and when our money stuck in the exchange how the hell are we going to the police and the courts to complain if we do not know who are the owners of the exchange and where are their office?

OP, we need regulation and the Japanese government is doing good work, it would be good if other governments did the same thing. I believe that the exchange would have a good reputation and many people could feel safe to make deposits of a lot of money.

Well for me this is not a "not good situation", if those cryptocurrency exchanges can't improve their system securities then it is right to just shutdown their service, why would people use a service that have a lot of flaws with their platforms. I agree that exchanges should be regulated, it is for us, the customers, and users good and this is also to prevent those excuses that they've been hacked but the truth is it is just an inside job and will not issue a refund to those customers lol. If other exchanges in japan wants to join this two exchanges then let them, only exchanges that have great securities will survive, we don't need those shady exchanges. btw this is a good move by japan.

I also believe that  this is a good move by Japan. First, it only shows that their government want to accept cryptocurrency as legal mode of payment and second they want to attract investors by removing those shady exchanges that will make the industry in chaos any time in the future.

I was also wondered reading the article. But later on thought about the situation of crypto industry in Japan. And got to know that they want to save their nation more than earn a lot of money. But, I think considering overall situation they will back in the industry.

There is nothing strange about this, the Japanese authorities just want to prevent another MtGox by making sure that the security on these platforms would be secure enough to protect the consumers. They are still Bitcoin friendly, but they are going to regulate it a lot more to protect the consumers.

I was a bit disappointed when I heard that the Japanese was using Bitcoin as a Tax cow, but I think it is still more beneficial for Bitcoiners there, if it is still accepted as a payment option, even though it is being milked for taxes.  ???

This is a false understanding about regulations. Regulations in Japan are not made to destroy bitcoin but rather to protect people and their economy. These rules will marry bitcoin and Japans financial and economic industry. This means that Japan is  keen on protecting their people while engaging on cryptocurrency. If only those exchanges will follow the regulations set up by the government then there will be no problem.

So that is very good for the people and help to save their country from scams and getting hacked.But these is not a problem for the crypto field this is only problem for the exchange owner with poor security features.

People are already using shady exchanges, as the exchanges are not regulated yet, so there's a high risk that they will be scammed. On the other hand, the risk/reward ratio is still good enough for them to take this risk, because they can earn way much more money that they risk in the beginning. So people are accepting the risk of these shady exchanges but if the exchanges will be regulated, it will be better from the point of view of the scam risk. Regulated exchanges will not have the benefit of the possible tax evasion, so I'm not 100% sure that all of the traders will be happy with the regualtions, although it will protect their money.

As Japan cryptocurrency exchange Mr. Exchange and Tokyo GateWay shut down their business, the number of operators that have pulled out their registration applications sums up to five, with bitExpress, Bit Station and Ramu already being in this list. The increased regulations by the once crypto favourable Japan will affect the crypto investors and market negatively.   

What’s going on in Japan is one strict implementation of security of exchanges that is best for the bitcoin users and investors. What’s wrong and not good with that? Japan as a nation of rule of law, guidelines and discipline is what their treats and advantages.

If any exchanges can’t follow the requirement then closure is favourable to us, to have another one given a chance  that’s is capable of doing so.

those people who don't want to pay taxes are already evading centralized exchanges anyways, regulations or no regulations have no effect on them.

so because of that regulations can only be a good thing for the whole cryptocurrency community. for example one of the things that bitcoin has been suffering the most has been the small size of the order books on exchanges so that a small dump crashes the market like what we are seeing these days.
a regulated exchange will attract a lot more customers and also people will feel much safer leaving their money on exchanges meaning leaving them in open orders which will increase the size of the order book (it becomes more packed) so the same amount of dump won't crash the market as big anymore.
who doesn't want that?!!

With all the latest security issues that has been surrounding exchanges and a lot of user funds falling in the wrong hands due to these mistakes, it is correct on the part of a country like Japan which has been a major player from the beginning of cryptocurrencies to effectively impose regulations on them in an attempt to step up the level of security.