Monex, the Tokyo-based financial services company, recently announced its acquisition of Coincheck with the aim of furthering its involvement in the blockchain movement. Monex believes that digital currencies reflect next-generation technology, and could “drastically change the way people approach money.” Now, Monex is expanding its pro-digital currency sentiment, stating that the industry’s exchanges could be improved through stricter cryptocurrency regulation.
"Japan's exchanges do both matching and custodial services - they're close to a bank," said Monex CEO, Oki Matsumoto, in an interview with Reuters. "To someone in the financial industry like myself, it's common sense that regulations will get stricter."
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Japan’s approach to digital currency exchanges remains somewhat contentious, and has only grown stricter since the Coincheck breach. The breach, which involved hackers stealing million of dollars worth of NEM from Coincheck’s exchange, created a sense of urgency for Japan’s Financial Services Agency, (FSA), which serves as the country’s financial watchdog. With the FSA more closely engaging with digital currency exchanges, several of Japan’s exchanges shut down. Further, Binance, one of the world’s most popular trading platforms, recently announced its intent to relocate to Malta, where regulations are much less strict. Monex’s acquisition of Coincheck gives the company an interesting perspective on the landscape, as it intends to own a company that served as the catalyst for further regulation.
Meanwhile, in a publication that the state of New York made available this week, New York Attorney General T. Schneiderman announced a fact-finding inquiry into 13 digital currency exchanges. The state now seeks response from 13 companies, including Coinbase, Binance, and Kraken.The Virtual Markets Integrity Initiative purportedly looks to “improve transparency and accountability” of major digital currency trading platforms in a bid to protect investors, but has been met with opposition by some. One exchange in particular, Kraken, is taking a stand against the New York enquiry, calling it an overreach that disrespects the time and resources of digital currency exchanges. According to Kraken CEO, Jesse Powell, Kraken left New York three years ago, following the state introducing requirements for exchanges to hold a “BitLicense” to operate in the space.https://twitter.com/jespow/status/986700932778934273Powell further stated that “New York is not only hostile to crypto, it is hostile to business.” Ultimately, it is clear that there is no consensus amongst pioneers about the appropriate role of digital currency regulation in the landscape.
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