Now Japan does not seem to me a Paradise for cryptocurrency lovers. It is a closed society that does not allow new members. We have long hoped for salvation from persecution on the Japanese Islands. But it is not. Our fate is in our hands only and no one will help us. We must unite ourselves and build our own society.
That's certainly one interpretation, but I'd argue that, despite being heavy handed, what Japan is doing is ultimately good for cryptocurrency in the long run. The expression goes that "
a chain is only as strong as its weakest link". For too long, exchanges have been the weakest link in that chain. Whether it's deposit and withdrawal delays, no replies to support tickets, dubious volume reporting, or worst of all hacks, thefts and generally poor security. If they want to be the custodian of their customers' funds, they have to be fit for the job. Japanese regulators are just making sure they've taken all reasonable precautions to protect their users' money. Exchanges that don't measure up get shut down. It's not a question of blocking
all new exchanges, I just don't see why we'd want to encourage more sloppy or careless exchanges when we've had quite enough of those already.
Cryptocurrency lovers should understand that a transaction between one sender and one recipient is already secure enough, because that's protected by cryptographic functions and the security of the network hashrate. But leaving your money in the care of strangers on the internet has entirely different security considerations, so the regulators are compelled to take action on exchanges because of this.
