Japanese regulators have considered restricting trading of privacy-focused altcoins such as Monero (XMR), Dash (DASH) and Zcash (ZEC), Forbes has reported, citing unnamed sources, close to the country’s financial watchdog, the Financial Services Agency (FSA).
According to the sources, the FSA was taking all available steps to discourage the use of the aforementioned cryptocurrencies. The report states that during an April 10 working group meeting of virtual currency experts and the agency, Monero and Dash were both mentioned as highly problematic digital coins. One of the members of the group reportedly expressed concerns over the potential use of the two tokens for money laundering.
“It should be seriously discussed as to whether any registered cryptocurrency exchange should be allowed to use such currencies,” the member said, according to Forbes.
Following a major cyber-attack in January, in which around $500 million worth of NEM tokens were stolen from the Coincheck crypto exchange, the FSA has ramped up its efforts to regulate the sector. The watchdog conducted an extensive probe into the crypto trading businesses operating in the country and issued a wave of punitive measures, including temporary suspension orders, against exchanges whose performance was deemed unsatisfactory.
Coincheck itself received two orders by the FSA to raise its business standards. It was reported in mid-March that the exchange was dropping Monero, Dash and Zcash trading in an attempt to show better compliance standards. According to Forbes, other exchanges that have applied for a full licence with the FSA, have been informed by the watchdog that dealing with these three digital coins would be detrimental to gaining approval.
As of 14:32 BST, the Dash price stood at $465.16, Monero was trading at $232.12 and Zcash was at $279.48. The three virtual currencies have seen significant losses over the past 24 hours, which appears to be in line with a wider cryptocurrency decline.