Bitmex, a Hong Kong-based Bitcoin derivatives exchange registered in the Seychelles, reportedly deactivated the trading accounts of clients from the U.S. and the Canadian province of Quebec this week. Bitmex also imposed similar restrictions against clients from North Korea, Iran, Syria, Cuba, Sudan and Crimea, to avoid violating anti-money laundering and anti-terrorist financing laws. Coincheck, a Japanese cryptocurrency exchange registered with the Kanto Financial Bureau, recently lost $530 million in altcoin tokens due to a hack. Despite the loss, Japan's Financial Services Agency granted full permission for Coincheck to continue operations in the country. According to a recent report from South Korea's Ministry of Science and ICT, Internet & Security Agency, and the Ministry of Economy and Finance, only a third of cryptocurrency exchanges satisfy the government's network, security and wallet management standards. The South Korean agencies inspected a total of 21 cryptocurrency exchanges from September to December 2018 and examined 85 different aspects. Only seven of the cryptocurrency exchanges satisfied the applicable standards: Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco and Huobi Korea.

Also this week, the Finance Minister of Malaysia announced that the Securities Commission plans to regulate initial coin offerings and the trade of cryptocurrencies effective Jan. 15. Meanwhile, The Cyberspace Administration of China (CAC) introduced new regulations for blockchain-based companies that operate in China. The CAC's guidelines require companies to permit authorities to access stored data and obtain an ID card or mobile number from its users ‒ the new regulations will be effective Feb. 15. In Spain, The Spanish National Securities Market Commission added 23 unauthorized cryptocurrency exchanges to its warning list this week. The Danish Tax Council will soon permit its Tax Agency to access cryptocurrency trader information from exchanges. Upon the Tax Agency's request, cryptocurrency exchanges must produce trader information, including trades, names and addresses, and central person registration numbers, for the period spanning 2016 – 2018. The Danish Tax Agency ultimately plans to use this trader information to determine if citizens are paying taxes on any profits.

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