As Japan becomes more Bitcoin-friendly, more than 10 Japanese companies are launching Bitcoin exchanges in response to the rapidly growing demand for the cryptocurrency, according to a Nikkei report.
The sudden competition for space in the digital currency ecosystem follows significant legal changes that have already sparked a surge in demand for cryptocurrency among investors, traders and ordinary Japanese citizens.
In March 2016, the Japanese cabinet passed a bill recognizing cryptocurrencies as the digital equivalent of money. On April 1, Japan officially classified Bitcoin as a recognized payment method. Late last year, Japanese officials decided to abolish the 8% consumption tax levied on Bitcoin purchases through exchanges, which is scheduled to take effect this July.
Japanese retailers have turned their attention to Bitcoin and have already taken steps toward its adoption in the country. Several major deals between retailers and blockchain companies will soon result in Bitcoin acceptance at 260,000 retail locations this summer.
Last year, Japan's legislature passed a bill that would regulate the activities of virtual currency exchange operators under the jurisdiction of the Financial Services Authority (FSA), the country's financial regulator.
Now, to operate in Japan, exchanges must obtain a special license. CCN has previously reported on the minimum capital and operating requirements for the license.
A Nikkei report said 18 companies plan to apply for the license, citing the Japan Cryptocurrency Association. These include existing Bitcoin trading platforms such as Japan's largest exchange bitFlyer. However, it is reported that 10 of the 18 companies awaiting licenses are new entrants to the market.
None of Japan's three megabanks currently plans to start trading digital currencies, the report said. However, it is worth noting that all three of them - MUFJ, Mizuho and SMBC - are investors in Tokyo-based crypto exchange BitFlyer, the country's largest exchange by trading volume.
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