Good job for the Japanese government they are just protecting the people and the country from fraud so for me it's move is nice. They can only regulate exchanges not crypto's. Here in my country exchanges has been regulated too and we've had no problems so far. I know that they are monitoring in every transaction we had but that is what all they can do. We remain anonymous in our transactions online and why should I be afraid of exposing my transactions to them if I only withdraw small amount of money from my earnings online? I never tried to have bigger amounts  of coins stored on my wallet maybe soon.

But the only downside on these exchanges is that they put a limit on the amount we are going to withdraw if we are not a verified user then we can only withdraw smaller amount of money from our Bitcoin wallets or other crypto wallets. We can be secured through regulating from scam right? So why are worried about these things? Are we doing something illegal? It does'nt matter if governments regulated exchanges and put taxes in it because it is for our dear country and we are safe to store our funds in them without the doubt of them running your funds away. Take note that we only pay taxes once we withdraw our coins using  exchanges not to the extent of every single  transactions we made and need to pay taxes because exchanges is different from wallets.