For Bitcoin, which is reccognized as real currency in Japan this might be a big step and clarifies his position. But outside Japan privacy coins are some sort of non-fungible fundings to escape from torture of a dictatorship. Taken this kind down means a black market and selling of these coins will taken on dark market places and leads into a very high value because its complex to buy them. So this sub-market you could not control.
Shady business always exist where politic want to decide more than they elected for.
Liquid Exchange Confirms Asset Delistings Due to Regulatory Requirements
Japanese exchange Liquid officially announced the delisting of 27 assets, citing regulatory precautions.
Japanese exchange Liquid recently unveiled a mass asset removal from its platform, which COO Seth Melamed claimed necessary for legal compliance. “Liquid works closely with regulators in Japan and Singapore,” Referring to Anti-Money Laundering, or AML, and Combating the Financing of Terrorism, or CFT, regulations, he added: “As part of risk management we have to take a conservative approach regarding maintaining listings in tokens that are potentially viewed by regulators as in conflict with rules around AML and CFT and the Funds Travel Rule.”
For Bicoin a great step - but we need them to keep a soverign society also. Full story here.