In January 2018 there was a $500 million hack on Coincheck exchange, the biggest hack in the cryptocurrency world to date. The tokens were stored on online hot wallets which are known to be more susceptible to hacks. As a response to this hack the The Japan Virtual Currency Exchange Association (JVCEA), a self regulating body made up of 16 of the currency exchanges was created, in an effort to rebuild confidence in crytpo currencies.
Based on the the advice of the JVCEA the Japanese Financial Services Authority (FSA) announced an outright ban on all tokens that provide a sufficient degree of anonymity to its end users such as Monero and Dash. This was a surprise to most, since - Japan is arguably the most accommodating jurisdiction to cryptocurrencies, and had legalised them in Spring 2017.
Most Japanese exchanges have responded by delisting the privacy tokes from their exchanges in line with the JVCEA’s recommendations in an effort to uphold their reputation as compliant and safe places to trade.
Monero has been an extremely popular cryptocurrency and is enormously popular in Japan but has been criticised for being the new preferred cryptocurrency of criminals mostly due to it being favored by drive-by miners. The FSA claims that the ban is a way to crack down on any digital currency it sees as useful for money laundering and other illicit enterprises.
The FSA decision is one of the first instances where a government entity has questioned the status of privacy coins. Time will tell whether privacy tokens or their technology will be further restricted.
One thing to remember is privacy still exists without privacy tokens, at least to a degree. The very nature of cryptocurrency is that it is based on cryptography technology. Transactions can still be secure and private. For instance, cold wallets do not require any personal information to register to them.
Privacy and security are paramount to the CRIP.TO project. The CRIP.TO Black hardware device will include a crypto wallet that is always encrypted. Given the fact that it is rarely connected to the internet and when it is, all communications are encrypted with the company’s special recipe of encryption algorithms. The privacy of CRIP.TO customers’ bitcoin transactions are as well protected as their normal communications. And their crypto coins are also secure.
In fact, CRIP.TO feels cryptocurrencies are one of the most secure means of handling financial transactions over the internet. So much so that the company is actively integrating blockchain technology into the processing of its stack of services and is investigating methods of using cryptocurrencies to fund development and pay for services including reevaluating the benefits of an ICO.
Governments have a job to do but normal citizens and companies have the right to communicate fearlessly. CRIP.TO thinks that extends to cryptocurrency transactions as well. Check out our solutions at CRIP.TO.