Japan, the crypto friendly nation with a tight grip on the industry, is this a peek into the future?
As you know, in Japan cryptocurrency trading is heavily regulated through crypto exchanges, in a bid to make the community safer and in a bid to reduce instances of crypto crime and fraud. Now, according to new reports, the Japanese police forces will be given new rights to trace and access cryptocurrency transaction data, via the installation of a new software. This is a part of a further attempt to totally stamp out cryptocurrency related crimes in the country.
Simply put, Japan want to create a safe, clean and clear cryptocurrency industry, they want adoption, but first, they want to ensure that the technology is totally safe. It’s mostly a good thing, but it is also a little concerning in terms of privacy and data rights that the police will be monitoring all crypto transactions.
According to Cointelegraph:
“In 2019, the National Police Agency will reportedly put special software into service to track the history of virtual currency transactions within the country. The move comes as part of an effort to fight the increased level of cryptocurrency misuse and thefts. The software was developed by a private company, the name of which has not been disclosed. According to the NHK, the software can extract transaction data needed for an investigation, visualize it from open records, and show what crypto exchange operators used the currency for.”
The roll out of this software is alleged to be costing around $315,000.00, therefore it’s clear that this has been designed to make an impact and is not a package that is just going to be used on an ‘as and when’ basis. The police clearly want to keep a very close eye on what is going on within cryptocurrencies.
What are they looking for?
Suspicious transactions that in turn could lead the forces towards solving crimes. This isn’t a case of tracing people for the sake of it, the police forces in Japan want to use this to their advantage to trace actual criminals and fraudulent transactions.
As stated, it’s a good and a bad things, a paradox if you like. Hopefully, this is used in the right way and doesn’t become a way for the police to abuse their powers.