In July 2018, Huobi Pro crypto exchange will suspend its service for traders and investors from Japan. A major trading platform was not licensed by the Financial Services Agency (FSA) of the country.
Why it is important
- Japan is strengthening the regulation of crypto - exchanges. For example, recently FSA issued correction orders to six crypto exchanges after inspecting their trading activities for several month.
It’s a big blow for the exchange since 13% of the Huobi's customers live in Japan. According to a letter distributed to users, they will not be able to use the website after July 2. Representatives of the company have not specified how Japanese traders will withdraw funds from the stock exchange.
Since the beginning of the year, the Financial Services Agency (FSA) has stepped up control of the digital money market after hacking Coincheck, when attackers stole more than $500 million in the NEM altcoins. Previously the Japanese financial regulator has for the first time refused to authorize a licence for a crypto-exchange platform.
FSA has rejected the registration of the cryptocurrency exchange FSHO. An inspection of the company has revealed that the Yokohama-based firm does not possess the necessary systems required to manage its business.
The market reacted negatively to the news Huobi’s withdrawal. It has possibly added to the fact that over the past day, the total capitalization of the digital money market has decreased by $ 6 billion and now stands at $ 247 billion. The market price of bitcoin fell all the way down to $6060, after which it began to grow again.
Recently it also became known that the Financial Action Task Force (FATF), an intergovernmental organization dedicated to the development of measures to combat money laundering, plans to create a set of mandatory rules for cryptocurrency exchanges.
By Ekaterina Ulyanova