This could be an extremely interesting development. As I read it, Japan want to introduce rules making individuals manage their own digital assets (i.e. cant be left on the exchange)
The keys lines are:
"…the upcoming G20 Summit in Osaka, Japan, from June 28th to 29th, lists cryptocurrencies as a leading topic on the agenda. Prime Minister Shinzō Abe’s government will address recent amendments to the Financial Instruments and Exchange Law and the Fund Settlement Act regarding virtual currencies and the digital economy.
There will be a special focus on security. In the wake of the Coincheck hack, which drained $532 million worth of NEM last year from the Japanese crypto exchange, policymakers are aiming to intensify crypto trading restrictions.
Following the coincheck hack, which was made possible due to crypto storage in hot wallets that interfaced with the internet, Japan’s Financial Services Agency has introduced legislation that requires customers to manage their own crypto assets using a “cold wallet” that is disconnected from the Internet."
Notably, they are bringing this to the G20, suggesting they encouraging other countries to adopt similar rules.
Would I be wrong in saying, that these rules, if implemented, would make it extremely inconvenient to use existing centralised exchanges since users wouldn’t be able to store their crypto on them?
If so, it would suggest non custodial trading similar to what Nash is offering would be a superior service to existing centralised exchanges.
This is an interesting development.
Hopefully, the Nash team can leverage on this policy by making presentations to the Japanese and other governments to show how their products are safeguarding crypto users and investors.
These kind of regulations would definitely favor platforms like Nash; curious if Nash has Japanese approval for trading and if there is a JPY gateway (noticed Japan is not on the referral banned list).
As a bonus piece of info, I found some additional information on more companies being onboarded to crypto:
1.Rakuten , one of the largest e-commerce platforms in the world, was awarded a cryptocurrency exchange operating permit from the regulatory Financial Services Agency (FSA). The company last year bought out an existing platform named Everybody’s Bitcoin for around USD 2.5 million, and has been waiting for FSA approval after rebranding the company Rakuten Wallet .
Rakuten says it is hoping to begin trading as early as next week after “restructuring the [exchange’s] management system, formulating a business improvement plan and strengthening internal control systems,” in line with an FSA business improvement order issued to Everybody’s Bitcoin last year.
2. And the positive news kept rolling in. Yahoo Japan will also be making its crypto exchange debut in the coming weeks. The company last year bought a 40% stake in the FSA-licensed Bit Arg exchange, which has now been renamed Taotao . The exchange has announced that it has now begun accepting accounts, and will be open for business in May.
3.Money Partners Group , a foreign exchange trading platform, has struck a deal with the second largest securities brokerage in Japan, Daiwa Securities . The duo hope to launch blockchain technology-related operations, including an exchange.
It seems that slowly but surely, the steady and by-the-book approach of Nash is paying off. In light of the current XRP scandal and rumors about SEC pursuing LINK next, it seems that basically every pre-mined coin could be in risk of being declared a security.
Pursuing CEXes is a matter of when, not if, are SEC and the EU regulators would pursuit them with Binance already in sight;
Btw. if you are an American citizen you can tip off SEC of any unfair competition of Nash that doesn’t follow the rules (so basically any CEX/DEX out there) on the following link or on Twitter.
Even decentralized projects such as Uniswap are not safe as SEC commissioner already commented in such a way;
In terms of decentralized projects, I think that simply developing an indestructible protocol is not going to do much. At best, such services would be used sparingly as dark web or Silk Road today. But if you want to change the mainstream and have an impact on everyday life, you have to be able to integrate into the real (mainstream) economy. This is exactly what Nash is doing and what was the Nash vision all the way from its whitepaper.
By introducing regulated DEXes we incrementally raise our degree of freedom by introducing money that can’t be printed out of thin air and non-custodial approach to finance which gives back full financial sovereignty back to the individual. This is a common sense approach that is actually doable in the real world, this is what Nash DEX is developing and this actually has the potential to improve people’s lives and not some deregulated money-laundering pipe-dream of a DEX.
I just hope we won’t have to wait for too long before regulators step in or charge petty fines like with EOS and make a mockery out of the whole system, especially for the companies that endured tremendous pressure trying to play by the book.
There are many benefits of cutting corners in the short term but there are also some benefits of insisting on regulatory compliance. For instance, with regulatory compliance and infinite transparency that Nash offers, regular, mainstream companies that are not crypto related but are interested in dealing with crypto in some form of another, are more cooperative with projects such as Nash because regulated crypto projects lower the risk and uncertainty (legal and financial) often associated with crypto projects. Nash will be either too early for such benefits or the first one to receive them.
@canesin Will nash be regarded as a Crypto-asset service provider after EU regulation “Market in Crypto Assets (MiCA)”, which will be applied about 2022? And if yes how do you intend to deal with it (Location, Legal Status, Permissions etc.)?
Regulations are indeed coming and this is great for Nash. Binance is losing fiat gates left and right. Other exchanges are unaffected for now.
If Nash manages to integrate itself in the next big thing in DeFi (the next AAVE) albeit early enough, we could see some nice growth.
Since Nash is now mainly a wallet, maybe Nash could work with some exchanges (CEXs even) to provide a regulated fiat on/off ramp similar to what it already does by featuring several DEXs in its app (maybe this could be extended for Nash to be featured in GUI of these DEXs similar to how it is featured in AAVE).
I don’t know if this is in line of this topic, but with the crackdown on usdt and Binance’s stop on euro transactions…is this not the time for NASH to push HARD on marketing? Get all the people over to Nash who want Euro payments and be able to withdraw their funds from Binance? Since you need KYC for this platform and every transaction is traceable to accounts on binance where people also did KYC…why not open the floodgate to let everybody come in??
Most of the activities of most exchanges are still unregulated so other than Nash offering its regulated fiat ramp to some DEX or CEX not much has changed, though we are heading in the right direction.
One other thing, taking down fiat on/off ramps of the competition means a great opportunity for Nash Link. Binance had many partners for its payment service which is now in a risk of shutting down in various jurisdictions.
