Line Fined by Japanese Regulators for Issuing Digital Currency

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Popular social messaging platform Line issued payment tokens for an online game, but that decision may backfire on the company very soon. Japanese regulators feel Line broke rules, which means the company is subject to a financial sanction.

Also read: Mitt Romney Tax Record Hacker Sentenced to Prison for Bitcoin Ransom

Payment Token Line Crossed

Bitcoin.com_Financial Regulation Line App Digital Currency

Most people know Line as the social messaging app, which has become incredibly popular all over Asia over the last few years. But the company has been experimenting with other services as well, including issuing their own payment token that can be used for an online game.

This business decision seemed to make a lot of sense, as Japanese consumers are very keen on online games and applications which use prepaid tokens to boost player progression over time. However, these tokens are a cause of concern for regulators in Japan, as they are trying to come up with a new regulatory framework, which would apply to all types of “other” currencies, including Bitcoin.

Unfortunately for Line, the company is now facing a lot of scrutiny by financial regulators, and the Line offices have been raided in April 2016 as part

Read more ... source: TheBitcoinNews

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