Why China, South Korea, India and Japan Crypto Regulations Won’t Take a Backseat to the US or EU
Japan has seen massive growth in cryptocurrency and blockchain technology adoption in the past few years. The third largest economy in the world has implemented friendly regulations to promote the use of digital assets across the country. The question, however, remains, “How did the Japan people become so crypto friendly?”
The South East Asia region is one of the most receptive regions in new technology. Countries such as China, Japan, South Korea, Singapore, and India are all drivers of the world economy. However, when it comes to cryptocurrencies, in particular, most of the countries have taken a stern approach while Japan and Singapore have less stringent rules.
Back in 2017, a number of countries from the SE Asia region including China and South Korea locked out initial coin offerings (ICOs) and cryptocurrency trading in the country. As the doors shut in these countries, Japan opened its doors and allowed public sales in the country in a regulated manner. Could it be the close affiliation Japan has with the name of Bitcoin founder Satoshi Nakamoto?
Favorable regulations in the country have seen the growth in the use of cryptocurrencies as money – not as a legal tender. However, there are other factors impacting the rapid growth of crypto in Japan.
Japan Is Still Cash Centric, Low Adoption On Bank Cards.
Japan still has a very low reliance on credit cards and debit cards to complete business transactions.
In fact, most of the transactions in the country require Yen to be able to transact. While cryptocurrencies still signal a move away from the cash system, it offers a better proposition than the banking cards to the people of Japan.
The Real Estate Bubble Effects
Japan faced one of the most devastating economic collapses after the real estate collapsed in the ‘90s. The massive deflation required the government to inject cash into the economy at massive proportions.
The deflation caused a shrink in exports as the Yen became more and more expensive. The printing of money by the government plays a big role in cryptocurrency adoption today as the Japanese do not trust banks to hold their money.
Mt. Gox Role
Mt. Gox, the highly popularized hacked exchange also played a big role in cryptocurrency acceptance in Japan. Mark Karpeles, one of the co-founders of the cryptocurrency exchange, planted the seeds of Bitcoin in the country. He distributed some BTC to increase the market share of the coin as well as educating the population on the benefits of Bitcoin over fiat currencies.
The Mrs. Watanabe Effect
The highly educated housewife in Japan, Mrs. Watanabe, could also have played a huge role in adoption of crypto in Japan. These women are a byproduct of a patriarchal Japan society that seldom gives the women a position in management.
Furthermore, once they bear children most of these women do not return to work, relying on their husbands to provide. However, these women represent the investment backbone of the finances in the house which can explain the soar in crypto prices back in 2017.