Japan is one of the leading countries that are adopting cryptocurrencies with a broader driving force. Although the depth isn’t measurable but likely something great will happen to Japan’s crypto market.
Anyone interested in cryptocurrencies must know that Japan is a player, but until the recent time, for some crucial factors, they opted out to escape. This country is well known for some massive cryptocurrency scandals worth hundreds of millions of dollars.
The main effects of those scandals hold the regulatory and economic pace of Japanese cryptocurrency adoption back. But this time there are many new things in the Japanese cryptocurrency scenario. And all these will not only overcome the poor management of the exchange but also transform the overall way of trading. All the long-term crypto investors will enjoy at least some certain benefits of this new transformation of the Japanese market. But to the novices, our first recommendation is to learn how to buy altcoins for different spectrum. In this article, we will see the new relationship between Japan and cryptocurrency as the outcome of recent regulatory changes from the FSA.
The Japanese have long accepted the game culture. Over the years, “digital currency” has become a recognized component of such games. The idea of using cryptocurrency (magic internet funding) is hardly a conceptual leap for those who have long been accustomed to online “reward,” tokens and tokens. By March 2018, the Financial Services Authority (FSA) estimated that 3.5 million people invested in cryptocurrencies – most people in their 20s (28%) and 30 (34%). Of course, the adoption of numbers is not common for the older generation, especially the lag. A recent high-profile example is that the Japanese Cyber Security Minister acknowledged that computers have never been used.
The transforming landscape of the exchange of cryptocurrencies in Japan
Throughout April 2019, there were a series of New Japanese crypto exchanges that have been launched in the Asian country. The market is also transforming rapidly as several corporations are seen entering the market. According to the Financial Services Agency, it is not necessary to register when another company acquires an exchange of cryptocurrencies. But the case is different if it is assumed that the internal control system of the business model is changed. In this case, FSA will have to review them from the perspective of user protection.
There are also other measures that should be taken when there are changes in entries. Notifications of such changes must be submitted in full. Two large exchanges in Japan; Fisco Cryptocurrency and Huobi Japan were raided on Tuesday, April 23. However, the regulator has declared that the visits were only routine measures for all crypto exchanges.
The entry of new exchanges in Japan
There is a new exchange of cryptocurrencies operated in Japan under the name of Taotao. Initially called Bitarg, a subsidiary of Yahoo Japan obtained this exchange. This new commercial exchange began accepting pre-registrations on March 25th and will begin operations in May. According to a report from the Financial Services Agency, Taotao will only be compatible with the Bitcoin Core trade.
Other recently opened crypto exchanges
Japan’s equivalent to Amazon, the e-commerce giant Rakuten, has begun accepting account registrations for its new crypto exchange, Rakuten wallet.
For now, only customers who have an account in Rakuten Bank or who already have a Rakuten member ID can sign up in preparation for the trading launch, the company’s website says. It is not yet clear when he will accept requests from the general public.
The firm said in an advertisement that it has also deployed an automatic support service using AI (artificial intelligence) technology to respond to customer inquiries. It is also planning to launch soon a mobile application that allows users to trade with cryptocurrencies, as well as make deposits and withdrawals.
The company received a license for its cryptocurrency exchange at the end of last month from Japan’s financial services agency. Therefore, the exchange is recorded at the local Kanto financial office as a provider of virtual currency exchange services under the country’s payment services law.
Rakuten Wallet was previously known as Everybody’s bitcoin, an exchange that Rakuten acquired for $ 2.4 million last August. A change of brand from the entity to Rakuten Wallet took place on March 1, at which time the oldest service was closed.
Rakuten said last August that he believes that “the role of cryptocurrency payments in e-commerce, off-line retail and in P2P payments will grow in the future.”
“To provide cryptocurrency payment methods without problems, we believe it is necessary for us to provide a cryptocurrency exchange function,” he added. Rakuten’s e-commerce site started accepting Bitcoin payments in 2015 when it integrated its website in the USA with BITNET, Bitcoin payment processor.
Unlike Taotao, Rakuten Wallet allows the trading of Ethereum, Bitcoin and Bitcoin Cash against the Japanese yen. On the same day, another cryptocurrency exchange is known as Decurret also began to operate. It offers operations with currencies such as Ripple, Litecoin, Bitcoin, Bitcoin Cash and Ethereum.
Introducing other currencies
The FSA requires that all approved exchanges declare the type of crypts that will operate. This must be included in your application with the FSA. At this time, there are exchanges of cryptocurrencies 19 that are approved in Japan. There is a process that must be followed by a broker of crypto assets that wants to add more cryptocurrency assets. They must notify the authority in advance and comply with the regulations and laws in force. The same procedure also applies to those who wish to change old crypto exchanges with new ones. There is no difference between the registration process of a brokerage agent of Japanese crypto assets and a foreign one. This is how the current law works: all foreign companies must be limited in Japan before they can register.
Earlier this year, the Bittrade exchanger discontinued its service and began operating as Huobi Japan. The platform offers to trade in BTC, ETH, XRP, LTC, MONA and BCH. Meanwhile, the Fisco cryptocurrency exchange has completed the process of transferring assets from the Zaif stock exchange after the latter was hacked in September last year.
Finally, one of the strange things about the Japanese cryptocurrency scenario is that most successful cryptocurrency projects are exchanges. After a series of high-profile hacking attacks, most of the exchanges were forced to set offshore or shut down, but as already mentioned, some have already launched, and more companies are waiting in the pipeline to launch as FSA-approved exchanges.
Disclaimer: This content does not necessarily represent the views of IWB.