Japan’s Society is Taking Cryptocurrency Adoption Forward with Friendly Laws, Taxes and Shops
In general, most of the crypto-related firms are located between the United States and Europe. However, Asia is also playing an important role in attracting these kinds of companies. Indeed, Japan is becoming one of the main countries in terms of cryptocurrency adoption and usage.
One of the main reasons behind the success of Japan expanding crypto adoption is related to the fact that the country has a cash-based society. Although the country at the forefront of the technology world, cashless transactions are just 20 percent of all the transactions in the country.
The government has been trying to boost the mobile payments industry, something that would create several opportunities for virtual currencies and increased adoption in the future.
The country has also implemented different regulations to the crypto space. This allows companies to know where they are operating and how they are able to protect investors. During the last few years, Japanese exchanges experienced the worst hacks ever registered by the crypto space. One of them is the popular Mt. Gox back in 2014. The second one happened at the beginning of 2018 and affected the cryptocurrency exchange Coincheck.
Since that moment, the government started to impose stricter regulations around digital assets and blockchain technology. Back in April 2017, authorities amended banking law in order to include cryptocurrencies as a means of payment. In this way, Business and companies knew how to better deal with digital assets in the country.
Bitcoin and cryptocurrencies are taxed in Japan. However, as they were recognized as a payment method, the government has eliminated consumption tax on the sale of this virtual currency. Now, companies can accept cryptocurrencies in an easier and better way.
Here are many different companies and small retail shops accepting digital currencies as a means of payment. This includes one of the largest retailers in the country, Yamada Denki, which is now accepting Bitcoin for purchases made by customers. GMO is also allowing employers to receive a part of their salary in Bitcoin.
Not only big companies are starting to handle Bitcoin and crypto payments. Music schools or hotels are also starting to get involved in the market. During 2018, the space grew substantially in Japan and is expected to continue growing in the future.
As we wrote a few weeks ago, the Japanese Yen (JPY) surpassed the US dollar as the most traded currency against Bitcoin. This shows that Japan is a very active player in the market.
Although some other regulations have been imposed in the space, there are more than 190 companies trying to enter the Japanese cryptocurrency market. According to the country’s top financial regulator the Financial Services Agency (FSA), around 190 firms are waiting for approval to start operating in the country.