[Beijing Direct News NetworkJuly 7th] (Wall Street)Currency security, the world's largest cryptocurrency exchange, is facing unprecedented regulatory scrutiny. Behind this is the tightening of the global regulatory standards of the entire digital cryptocurrency industry, which will directly determine the success or failure of the whole market.

01 global regulatory "encirclement and suppression"

On Friday, local time, Thailand's Securities Regulatory Commission filed a criminal lawsuit against yuan an, accusing him of operating digital asset business in Thailand without a business license.

Thailand's Securities Regulatory Commission said that only licensed companies can provide digital asset trading related services in Thailand. In April this year, it sent a letter to warn currency security, but received no response.

Earlier on Friday, the Cayman Monetary Authority (CIMA), the regulatory body of the Cayman Islands, announced that it was investigating whether coin an and its subsidiaries had activities in the Cayman Islands that were regulated by CIMA.

CIMA expressed the hope that the public would understand that although the media said coin an was a cryptocurrency exchange enterprise incorporated in the Caymans islands, coin an was not registered in CIMA, was not authorized by CIMA, did not hold the license issued by CIMA, and was not regulated by CIMA.

This is just a small part of the global regulatory review that coin has recently gone through.

In Asia, Singapore's financial regulator said on Thursday that it would review its subsidiary in Singapore after its parent company has been reviewed by regulators around the world.

Japan's financial services agency (FSA) has previously issued a formal warning letter, pointing out that coin an's binance Holdings Limited operates digital asset trading business without being registered in Japan. Coin an was warned in March 2018 for the same reason.

In Europe, the UK market financial conduct authority (FCA) said on its official website on June 25 that binancemarkets, the holding company of coin an in the UK, is not allowed to carry out any financial business regulated by FCA in the UK, nor can it provide loans to individual customers.

In North America, Ontario will be included as a "restricted jurisdiction" from June 26, and customers in the province are advised to close their trading accounts by December 31, the currency told company account holders.

The latest action against currency security shows that exchanges cannot circumvent national laws by operating in other jurisdictions. Investors need to use the cryptocurrency exchange permitted by their country / region to avoid the risk of freezing or even confiscating their assets.

02 tightening of global digital cryptocurrency regulatory standards

Market analysis shows that the regulatory actions of various countries are not only aimed at the single behavior of coin safety company. The supervision standard of the whole digital cryptocurrency industry is tightening, which will directly determine the success or failure of the whole market.

Some proponents of digital cryptocurrency argue that any regulation violates the decentralized spirit of cryptocurrency.

What bitcoin pioneered was that it excluded Intermediaries - banks and governments - from financial transactions. Various regulatory measures may make digital cryptocurrency return to the old way of middleman.

At the same time, digital cryptocurrency is difficult to get rid of the existing decentralized system.

But those in favor of stronger regulation believe that if countries introduce reasonable encryption regulations, it can actually help the industry. Increased consumer confidence in digital currency and cryptocurrency transactions may encourage more people to buy and participate in cryptocurrency.

The lack of supervision makes the digital currency industry deeply involved in money laundering and tax issues.

Take coin security company as an example. In September last year, Japan's cryptocurrency exchange FISCO filed a lawsuit against coin security in the U.S. court, claiming that after zaif (now acquired by FISCO) was hacked and lost $63 million of cryptocurrency in 2018, coin security provided convenience for hackers to launder money.

In the indictment, FISCO said that a bitcoin address was traced through chain analysis, and the hacker cleaned 1451.7 bitcoins from this address through coin security. Coin security has the ability to freeze the account and block the transaction, but due to the lack of action by coin security, zaif's customers and the exchange itself suffered financial losses.