Japan – one of the most pro-cryptocurrency countries in the world – has embraced digital currencies like no other. Even though the country suffered losses in the famous Mt. Gox scandal, the Japanese government continues to create favorable conditions for cryptocurrencies.
The Japanese government’s policies and regulations have allowed digital currencies to thrive in Japan, with the country becoming one of the largest markets for cryptocurrencies in the world.
of Cryptocurrency in Japan
Although Japan’s Financial Services Platform (FSA) has recognized Bitcoin as a commodity and allowed it to be traded since 2014, the cryptocurrency gained further traction when the Bitcoin Legalization Bill was passed successfully on April 1, 2017 in the Japanese Diet (Parliament). The passage of the bill meant Japan officially recognized Bitcoin as a legal payment method and accepted it for goods and services in the country.
The FSA has also passed other regulations which allow for the transaction of other cryptocurrencies within the country. With proper Know Your Customer(KYC) documentation, the government seeks to reduce crypto use in illegal activities. These regulations also removed the 8% sales tax that was previously applied to digital currency purchases.
of ICOs in Japan
Like other countries, Japan has issued advisory warnings to investors to be careful before investing in ICOs. The FSA of Japan believes that ICOs have two major risks, the first being their volatility in terms of pricing and the second being the increased risk of fraud.
The FSA also believes that ICOs may come under the scope of Japan’s Payment Services Act and the Financial Instruments and Exchange Act depending on their structure. Some analysts speculate that the Japanese government may launch a crackdown on some altcoins in the upcoming months.
Markets in Japan
Japan is one of the first countries to start trading in Bitcoin and other cryptocurrencies. Conducive government policies have made digital currencies a hot commodity in the country. The country’s banks have themselves invested in several coins. A consortium of Japanese banks are even looking to launch their own crypto, J-Coin, which would be pegged against the Japanese Yen.
It is safe to say that Japan will become an important part of the cryptocurrency in the world in 2018, if not the dominant player. The Japanese government’s policies are also a lesson to governments all over the world about the benefits of incorporating cryptocurrency in their national economies.
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