Kucoin Announces Its Closure In Japan
Kucoin has announced that it will not be working with its Japanese clients. Due to the new Japanese legislation requirements, Kucoin will no longer be able to provide cryptocurrency trading services to all its clients living in Japan. Any KYC verification requested from Japan will automatically be rejected. Furthermore, the exchange will not offer our services in the Japanese language.
Although Japan is a cryptocurrency friendly nation, it has introduced strict guidelines for all the cryptocurrency exchange sites in the country. These measures are being taken to avert well executed crypto hacks.
Early this year, Coincheck, which is a Japanese cryptocurrency exchange was hacked and $400+ worth of cryptocurrency stolen. This attack prompted FSA to try and get enough security measures especially in the crypto exchange industry.
What Security Measures Have Been Put In Place?
All cryptocurrency exchange sites have to follow strict guidelines. None of the exchanges should store coins in online wallets and they should have a two-factor authentication for any transfers. Storing coins in online wallets makes them prone to hacks while 2-FA helps stop transfer of cryptos by people who are not authorized.
The exchanges are also to have a detailed KYC process. This will help prevent money laundering. For clients wishing to transfer large amounts of crypto, there will be thorough identification protocols for such people.
Cryptocurrency platforms will also be required to have the best practices when it comes to assent management. What this means is that clients assents should be managed on differently from the way the corporate exchanges are managed.
Exchanges are also prohibited from listing certain types of cryptos. All cryptos that promote total anonymity will no longer be registered on such platforms. Such cryptos are popular with money laundering according to FSA.
Due to this stringent measures that the FSA as imposed on all crypto exchanges in Japan, Kucoin is closing shop.