A popular Japanese exchange platform Coincheck lost approximately $530 million as a result of a hacker’s attack. Not so long ago it turned out that trading volumes of one of the biggest cryptocurrency exchanges OKEx were significantly increased.
These and other deals attracted the attention of the government of various countries to the crypto industry environment. The Japanese agency providing financial services conducted raids at the crypto exchanges. Due to that, two platforms stopped their work, and five others were obliged to perfect their security.
American SEC (The United States Securities and Exchange Commission) did not stand aside as well as the Securities and Futures Commission of Hong Kong(SFC).
After the actions taken by the USA and Japan, many crypto market players are expecting sanctions against crypto trading. Chief Executive Officer of Wealthman states:
«We are waiting for the continuation of repressions from the authorities, though it will lead to the gradual pressing of the secured technology of assets storing and commitment of transactions.
Last week Binance declared about opening a new office in Malta. Prosecution of cryptocurrency exchanges complicated a creation process of Binance base in Japan. Founded in Hong Kong last year, Binance opened an office in Japan and tried to obtain the license for operation in the country. However, the company decided to move its employees to avoid a collision with financial regulators of Japan.Binance is among cryptocurrency exchanges which received the warning letters from SFC in which the regulator haв demanded the exchanges to stop trading in virtual assets according to laws on securities.
There is a feeling that regulation is necessary for the leadership in exchange operations of cryptocurrencies and ensuring protection of investors.According to Todd Rowan, the CEO and the co-founder of Rewardstoken, such regulation will help to reduce operations of “roguish” exchanges, at the same time promoting industry growth.
“Regulation is almost always necessary to move away from bad participants and to protect consumers. However, bad regulation can kill opportunities and growth for the sector. The cryptographic market does not absolutely fit into the existing structure of regulation as there are components and types of use which conform to the traditional rules. It is a unique technology with many options of use.”
— he says.