• 1 day Big Business’ New COVID Initiative: No Jab, No Job
  • 3 days The Most Interesting Stocks Of Earnings Season, For Better or Worse
  • 5 days Chinese Stocks Rebound After Regulatory Scare
  • 7 days Apple Stocks Falls After Blowout Earnings Report
  • 7 days The 5 Biggest IPO Disasters Of 2021
  • 8 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 11 days Ireland Balks At Biden’s Global Tax Plan
  • 14 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 18 days Facial Recognition Is Watching You
  • 19 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 19 days The Fed’s $3 Trillion Headache
  • 22 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 22 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 23 days Delta Variant Real Threat To Economic Recovery
  • 26 days JEDI Drama Continues With Microsoft Contract Cut
  • 28 days DiDi Shares Take a Beating From Chinese Regulators
  • 29 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 29 days Jobs Report Has Big Numbers, But Still Big Problems
  • 30 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 33 days Didi Just Went Public, And Uber Is Loving It
How Fintech Will Get Skeptics Into Crypto

How Fintech Will Get Skeptics Into Crypto

Airline miles and hotel points…

Are Bitcoin’s Environmental Risks Overblown?

Are Bitcoin’s Environmental Risks Overblown?

Bitcoin has received a lot…

Money-Laundering Binance Probe Report Adds To Bitcoin Woes

Money-Laundering Binance Probe Report Adds To Bitcoin Woes

Binance Holdings, the world’s largest…

  1. Home
  2. Cryptocurrencies
  3. Bitcoin

Japan Regains Bitcoin Crown As Yen Trading Volume Soars

BTC

Japan is making major moves in the cryptocurrency world, with new legislation aiming to pave the way for a more supportive and secure regulatory backdrop to ensure that consumers are protected from exchange hacks.

The framework, proposed by the Financial Services Agency of Japan (FSA), comes in response to several high-profile attacks earlier in 2018, resulting in the collective loss of over $540 million.

The draft highlights several key issues, including a note requiring exchanges to hold assets “equal to or more than the amount equivalent to the currency and repayment funds.” This mandate will ensure that if an attack does take place, consumers will receive compensation for lost funds.

The proposition also aims to add restrictions to ‘deemed dealers,’ or companies which are awaiting regulatory approval. The new rules would forbid companies stuck in the regulatory limbo from advertising or soliciting with the purpose of acquiring new customers. The draft would also prevent companies from listing new coins. Currently, there are three businesses – Coincheck, Lastroots, and Everybody’s Bitcoin – which are poised to be impacted by this regulation.

In addition to the new security measures, the FSA also stressed the importance of working with other companies within the industry to ‘self-regulate,’ encouraging crypto firms to join the Japan Virtual Currency Exchange Association (JVCEA), an accredited collective working to get a handle on the industry from within.

The proposal comes as other notable Japanese lawmakers are pushing for even more supportive regulatory measures, including lower taxes and exemptions for inter-crypto trades.

The Yen Surpasses the USD in Trading Volume

While regulatory speculation has taken much of the limelight in Japan over the past couple of months, trading volume in Japanese yen has been climbing quietly behind the scenes.

As of Monday morning, the yen accounts for 47 percent of the total bitcoin market, beating out the U.S. dollar which maintains approximately 44 percent of the market share. Related: Worst December For Stocks Since The Great Depression

“It seems that Japan lives months or years ahead of the rest of the world,” explained Michael Ou, CEO of CoolBitX, a mobile cold storage hardware wallet for cryptocurrencies, explained, adding “While news of government intervention makes headlines, private companies in Japan are also working hard to improve the crypto market: here are more than a dozen Japanese cryptocurrency exchanges. With a growing number of Japanese businesses accepting cryptocurrencies as payment, and with many startups in Japan’s thriving tech scene, it’s fair to guess that continued investment will inspire continued innovation.”

The World’s Top Currency

With trade war woes and a stock market crash looming, the U.S. dollar has lost its footing against the yen in recent months.

The climb has been fueled by a strong Japanese economic outlook and inflows of investors betting on the currency as a safe haven asset. Stephen Innes, head of Asia trading, Oanda, explained, “The global equity market rout has been driving sentiment in the currency markets. I don’t see any significant rebound in risk sentiment yet.”

Backed by a strong national currency and supportive regulation, it’s clear to see why Japan is leading the crypto charge.

By Michael Kern via Crypto Insider 

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment