Nearly 200 Blockchain Companies Are Expressing Intent Of Entering The Japanese Crypto Market
Almost 200 Companies Are Ready To Enter The Japanese Crypto Market
There are more than 190 companies that are trying to enter the Japanese cryptocurrency market. The information was released by Japan’s top financial regulator the Financial Services Agency (FSA).
According to news.Bitcoin.com, the FSA said that there are more than 190 operators that expressed their intention to enter the Japanese crypto market. During the last few months, more than 30 companies asked for the necessary permissions to start operating in the market.
Some of these companies are Drecom Co. Ltd., Yamane Medical Corp., or Yahoo! Japan, among others. Currently, there are 16 registered cryptocurrency exchanges operating in Japan. The country has been imposing very strict regulations for companies to operate in its market.
During 2018, several exchanges in the country such as Coincheck and Zaif were hacked, leaving thousands of users without their funds. However, Coincheck was able to give back users funds later during the year. Zaif was purchased by another regulated exchange known as Fisco Cryptocurrency Exchange. Additionally, Coincheck was also acquired by Monex Group after the hack.
DMM.com announced a few days ago that it will not be launching its Cointap app. Although the company began accepting registrations from interested users that wanted to use the service, the e-commerce giant informed that even when they will not be launching the Cointap app, they will keep offering cryptocurrency trading services through DMM Bitcoin.
Furthermore, GMO Internet announced back on Tuesday that it will not be developing cryptocurrency mining hardware. The decision was taken after a bad year for mining companies in the cryptocurrency space. Indeed, several small mining firms had to shut down their operations after the price drop that affected Bitcoin (BTC) and other virtual currencies in the space.
Bitcoin’s hash rate fell more than 50% since its all-time high. However, now it seems to be recovering after a difficulty adjustment in its network.
Japan has been imposing strict measures in order to control the cryptocurrency market. Companies that want to offer services must be registered with the FSA and request permission to operate. There are some firms such as Coinbase that are trying to enter the market for a very long time but it is very difficult to do it. The necessary approvals might take longer than expected to be processed.
Although it is difficult for companies to be compliant with local regulations, this legal system provides clarity in the space, protects investors but it also allows firms to enter the market and keep innovating.
A few days ago, the Japanese Yen (JPY) was able to surpass the US dollar as the most used currency to trade Bitcoin.