Japanese Financial Service Agency (FSA) is currently considering the application of Line corporation to launch a cryptocurrency exchange. If events turn out positive, Bitmax, as the crypto exchange is called may be launched in Q3 of 2019.
Line Corporation is Japan’s most popular messaging app with a user base of around 80 million local users. According to a report from undisclosed persons in close connection with the corporation, the license may even be issued before the end of June. This will allow about 80 million people to exchange cryptocurrencies on Bitmax.
Japan’s Involvement In Blockchain
Japan has severally hit the headlines regarding issues related to blockchain and cryptocurrency developments. The nation took a decentralization turn as a way of improving its economy and attracted international investors from regions which are known to consistently ban cryptos.
Japan is one of the biggest crypto economies in the world and its regulations have encouraged the development of the blockchain generally. The nation is now home to many crypto exchanges which provide exchange services for bitcoin and a wide range of other digital currencies on an international level scale.
More Development Inbound
As Line corporation pressed forward in their acquisition of a license of operation for their proposed cryptocurrency exchange(Bitmax), there happen to exist a long list of other platforms currently in the review process of the nation’s FSA. Among those already approved are Fisco cryptocurrency Exchange and SBI virtual currencies, both of which obtained their respective approvals Sept. 2018, Huobi Japan approved in Sept. 2018, and recently, both Rakuten Wallet and Coincheck obtained their licenses in Q1 of 2019.
Coinage, FXcoin, LastRoots and, Okcoin Japan are still on the waiting list of the country’s exchange platforms awaiting approvals.
Blockchain adoption versus regulations
According to a report, Japan’s Consumer Affairs Agency indicated a 170% increase in consumer inquiries about crypto investments within the last 18 months. As more people come to know about and adopt the use of cryptocurrencies in the country, there has also been an increase in issues relating to cyber attack and fraudulent activities.
Japan identified a need for cryptocurrency regulations and has put agencies and regulatory practices in place. Earlier this year, Zaif exchange, under its new management was asked by the country’s Financial Service Agency(FSA) to adhere to the agency’s financial regulations along the lines of business management, privacy control, and fund security after it suffered a hack which resulted in the loss of around $63 million in Bitcoin (BTC) Mona coin (MONA) and Bitcoin cash (BCH)