The journey of cryptocurrencies, since Bitcoin’s inception in 2009 till today when over 4,000 altcoins are trading in the market, has seen its share of ups and downs.
Where a surge in the rates of cryptocurrencies makes it shine as a potential asset, plummeting rates of the same often makes it a criticizing element. A similar situation surfaced when Japan’s financial watchdog, FSA or Financial Services Agency, released its latest reports on virtual currencies.
According to FSA reports, there has been a sharp decline in the volume of enquiries concerning cryptocurrencies from potential investors. FSA’s arm, Counseling Office for Financial Services Users, informed that it handled 574 enquiries in the quarter to end-March 2019 but attended only 494 enquiries about crypto coins and assets in the quarter from April 1, 2019, to June 30, 2019.
The news concerning the FSA reports read,
“The number of enquiries about investment products grew from 1,999 to 2,164 in the second quarter of the year. If sorted by product, 406 (18%) of the enquiries related to listed shares, 232 (10%) related to FX, and 152 (7%) related to investment trusts.”
The shattering fall in the rate of enquiries lies in alignment with the drop in the price of cryptocurrencies in the past few months. Another reason for this slowdown can be attributed to the stringent policies and strict regulations of the Japanese authorities on the digital currency arena.
Earlier in the month of February this year, FSA barged into the offices of FISCO cryptocurrency exchange to conduct an onsite inspection of the platform. The team found certain violations in the business management system, risk management system, and external management system of FISCO and so issued a business improvement order to the firm. This eventually led to the announcement of an administrative action against FISCO Cryptocurrency Exchange by FSA.
Contrary to the enquiries on virtual currency, the enquiries about investment products showed an increase as per the data given by FSA.
The reports reveal that the number of enquiries of investment products increased to 2,164 in the second quarter from 1,999 in the first quarter. A proper assortment of the enquiries shows that 18 percent or 406 enquiries were on listed shares, 10 percent or 232 were concerning FX, and 7 percent or 152 were related to investment trusts.
Also, during the second quarter, the Counseling Office rendered to 89 complaints of fraudulent investment offers.