With China closing exchanges and banning ICOs, much of that trade volume has shifted to Japan. Japan now moderates nearly half of the global trade volume through its exchanges. Today it issued a statement that it has licensed 11 exchanges in compliance with the payment services law it passed in April this year. All bitcoin exchanges have been legally mandated to register with the Financial Services Agency by the end of September.
Japan Becomes Figurehead for Digital Currencies
Following China’s lead, Russia and South Korea have began cracking down on cryptocurrencies — especially ICOs. As a result, citizens from those countries are scrambling to find ways to continue to participate in the crypto explosion. With all of the doubt that this has cast upon digital currencies, it is a relief to see Japan fully embrace and promote them. As other countries look to shun bitcoin and altcoins, Japan seems to be gearing up to accept the increasing volume with open arms. As long as the world’s 3rd largest economy maintains its protective umbrella, there is little chance of digital currencies being “shut down by government” as Jamie Dimon so infamously suggested.
Japan has consistently made strides toward embracing digital currency. In April it laid the groundwork for formally legalizing bitcoin. August brought the world’s first issuance of a bitcoin backed bond, through Japanese financial information company Fisco, and this has culminated in the country becoming the premier facilitator of digital transactions. It has done so safely and intelligently, with all of its regulatory framework focusing on the security and protection of those involved in the transactions. Although this does not help define bitcoin as the decentralized currency it was designed to be, it does help perpetuate its acceptance into the future.
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