Japan’s Bitcoin Growth is Set to Explode with Nearly 200 Blockchain Firms Awaiting Crypto Licensing
The cryptocurrency space in Japan continues to grow amid a hard regulatory environment created by Japanese authorities.
In general, Japan was always an open country towards digital currencies, but after a few issues in the country that affected the space, the regulatory agency of the nation imposed stricter regulations.
The Japanese Financial Services Authority (FSA) has been issuing licenses for crypto companies to operate in the country. The decision was taken after one of the biggest hacks experienced by the crypto market. The cryptocurrency exchange Coincheck was attacked for $540 million at the beginning of 2018. Zaif, another crypto exchange, has also experienced some issues during 2018.
During 2018, Bitcoin (BTC) entered a bear market hat affected the whole industry. At the end of 2017, each BTC was worth close to $20,000 while a month ago it was traded around $3,200.
Although the crypto market has changed compared to what it was back in 2017, the interest for digital assets and blockchain technology does not seem to be dying. Indeed, there are 200 different firms looking to get the regulatory approval from the FSA. Some of the firms that are trying to receive this approval are MUFJ Bank or the popular messaging application Line.
A popular company that has also entered the Japanese market but it is also waiting to receive regulatory approval is Coinbase. Although it has opened an office in Japan, it is not yet offering services in the country.
Despite the fact that there are yet around 200 companies waiting for FSA approval, the regulator seems to be trying to introduce new rules and regulations. This is according a report from the Japan Times. Apparently, the intention is to control those ads that promote cryptocurrencies to become rich in an easy way. At the same time, exchanges will also have to implement stricter know-your-customer (KYC) procedures to keep operating.
Companies want regulations and Japan is giving it to them. Even with a bear market and a big effort from authorities in the country to control this expansion in the crypto market, companies are still ready to enter the space and keep operating in Japan.
It is important to mention that Japan has one of the largest crypto communities around the world and the Yen (JPY) became the most used fiat currency to purchase Bitcoin.