Japan: A global leader in Digital Currencies
Japan is considered to be a global leader when it comes to the cryptocurrency market developments. According to the recent statistics, the Japanese Yen accounts for 52% of bitcoin. Therefore It is a nation which has highly accepted cryptocurrencies especially Bitcoin. Currently, Japan is considered the only world country which has the required legal system which acts in the regulation of crypto trading.
Japan had been involved in cryptocurrency regulation for a long time. This was due to the event which happened following the Coincheck Inc. hack which was one of the biggest cryptocurrency exchange based in Japan. Therefore, this led to the crackdown of all the crypto trading organizations in the country requiring them to adhere to the regulations which would stop risky trades and also exposure to vulnerabilities.
According to the views of the Japan-based traders, during the regulation period, they were worried of what would happen to their investments and money if the government would be involved in the closure of the crypto exchanges. However, now that the regulation is over and this might be the reason why Bitcoin and the other cryptocurrencies were involved in lows this month and last month. It was due to the fact that people were involved in a sell-off which was initiated by the closure of some crypto exchanges and also the licensing period.
Additionally, people have faith in the formation of the new Japanese cryptocurrency exchange association and the country might have close to 3 million investors now. The move to have self-regulation has restored market confidence for the investors and also the potential investors. Therefore, the individuals in Japan and the crypto companies believe that many Japan-based investors will be involved in the purchase and this will push the cryptocurrency prices up.
According to the JCEA chairman, they seek to ensure that there is adequate security for the financial services operators and also the crypto exchanges.