Japan is one of the world leaders in blockchain development and blockchain communities as aspiring projects crop up every day in the supposed “Satoshi’s country of origin”. Japan became one of the first countries (if not the first) to regulate cryptocurrency activities including exchanges, institutions and funds giving businesses a definite framework to work with. Furthermore, the increasing user base across the country makes the country one to watch out for in the coming decade.
In this article we will focus on Japan’s cryptocurrency ecosystem and why the country is one to watch out for in 2020.
Access to regulated crypto channels
Cryptocurrency institutions and those dealing in crypto in the island nation are heavily regulated by Japan’s Financial Services Agency (FSA) following a history of hacks including the infamous Mt. Gox episode. With the reopening of the BitFlyer exchange to new customers in July 2019, rise of Bitbank, a JPY-to-crypto exchange that does not charge any fees on trading and deposits,
Despite reports showing the domestic population is turning away from crypto, institutions are increasingly getting into the field of blockchain such as Rakuten. With the blockchain institutional investment expected to soar in the coming year, having a regulated crypto environment adds appeal to Japan as the preferred destination given pressures from the blockchain islands.
Rakuten’s entry to blockchain and crypto
Despite the general downtrend in interest amongst retail traders in the country, Japan’s Amazon and largest retailing store, Rakuten, announced its Android wallet in August allowing users to store and trade Bitcoin (BTC), ether (ETH) and bitcoin cash (BCH) against the Japanese yen.
Recently, the retail giant announced they will be converting loyalty points bonus to the three cryptocurrencies (BTC, BCH, ETH) which provides a gateway for new entrants in the industry.
High domestic saving, financial literacy!
Japan is one of the country with the highest domestic savings rate. However, the country faces low interest rates which combined with the high level of financial literacy has made a number of investors switch to cryptocurrencies. These factors combined with the accelerated development of blockchain in the country, may prove a recipe for crypto’s success in the country in 2020.
The Bitcoin block reward halving is expected to reduce supply of BTC and in tandem increase price, will Japanese investors turn to the asset as a safe haven in 2020?
All in all, the current blockchain and crypto growth in Japan is outpacing most of the developed nations and 2020 may present an even bigger year for the industry. Hold on tight!