Recently, China has paralyzed its cryptocurrency market by banning the trade of this newer type of currency. This ban put Japan on the path to becoming the powerhouse of Bitcoin.
With that said, Japan represent a major part of the cryptocurrency market around the globe. And, according to recent data provided by Cryptocompare, Japan’s quick rise as a focal point for Bitcoin should not be a surprise. The country was already prepared to take on this role.
Now, Japan controls 59.77% of Bitcoin’s trade volume. In comparison, the US only produces about 25.97% of Bitcoin exchanges. So, could the Japanese economy start to evolve thanks to crtptocurrency?
Japan and Bitcoin: love story
One of the main reasons for Japan’s arrival on the scene is due to its open attitude towards cryptocurrencies. Japan was one of the first countries to fully embrace digital currencies by making Bitcoin a national currency on April 1st, 2017.
Japan’s Financial Services Agency (FSA) attested to this by stating that they had approved 11 different cryptocurrency trading platforms including one of the biggest, Bitflyer. They authorized the exchanges under a practical and easy to understand legal framework that made their operations non-binding.
Since the announcement in April, major exchange platforms have been rushing to inform their customers about the new KYC (Know Your Customer) procedures. This process involves companies verifying the identity of all its customers.
Customers must now answer a list of questions that were not asked prior to the announcement. They will be asked about their profession and why they are interested in Bitcoin transactions. They will also be asked to download identification documents and wait for the trading platform to process them. In addition to these new security measures, a postcard will be sent to the registered address of new customers to verify that it is, in fact, a real address. The customers will be given a verification code that must be entered online before being able to use their account.
Japan regulate the crypto-sector for the best ?
The country has chosen to regulate the crypto-sector so that both the government and consumers can benefit from digital currency. Japan’s initiative has created a strong market, of which the government can maintain some control. At the same time, consumers will be more comfortable knowing that they are not breaking any laws when buying and using Bitcoin.
According to estimates by Nikkei, a leading financial newspaper, there are now 4,500 businesses in Japan that are accepting payments in the form of Bitcoin.
In addition to the interest and speculation about Bitcoin, Japanese businessmen are rushing to start mining Bitcoin. The country’s financial sector is starting to view Bitcoin mining as a potentially lucrative method of making profits, but it is also a way to further Japan’s domination of the cryptocurrency. Already, this has had a very positive impact on Japan’s economy.