Japanese Consumer Agency Reports 70% Spike in Crypto Queries

Japan's consumer protection agency released its annual report this Tuesday.

The Consumer Affairs Agency (CAA) reported a notable increase in the number of queries it received regarding cryptocurrency exchanges.

According to the report, the CAA received 3,657 inquiries regarding Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term over the course of its most recent fiscal year.

That was an approximately 70 percent increase on the prior year when the consumer protection agency reported that it had received 2,166 queries regarding virtual assets.

That number was itself 3.5 times larger than the prior year.

In many instances, people complained to the CCA that they had been tricked or mistreated by a cryptocurrency company.

Separating the good and the bad

Customers complained, for example, that they had paid for a particular cryptocurrency but then never received it. Others said that their Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term accounts had been breached and money is taken from them.

Some people also just wanted to get more information on digital assets. For example, a number of people asked the CCA how they should go about establishing the credibility of a cryptocurrency exchange or any other company dealing in digital assets.

The CCA's report is very much in line with other reports issued by consumer protection bodies and financial regulators from around the globe.

Last month, the French Financial Markets Authority said in its annual report that cryptocurrency scams had effectively replaced others involving binary options and currency trading.

The financial watchdog pointed out that in 2016, it received only 18 complaints related to cryptocurrency. In 2018 that number had risen to 2,600.