China and other parts of the world are trying to ban cryptocurrency, Japan is working on adopting it.
China wants to keep Bitcoin out, Japan wants to become the cryptocurrency capital of the world.
One is operating from a place of fear while the other is operating from a place of opportunity.
One is fighting a losing battle with technology and innovation and the other is embracing technology and a new way of living.
Japan made Bitcoin official legal tender back in April of this year and hasn't looked back since.
As of early this morning, regulators announced that they have issued operating licenses to 11 exchanges already.
That's great, but what does it mean?
Basically this is just an enforcement of a section of the law that was part of the payment services law which mandated all cryptocurrency exchanges register with authorities by the end of September.
This was part of the law that established Bitcoin as a legal form of payment.
So far, 11 licenses have been issued to exchanges, 17 applications for licenses are still in the review phase, and 12 exchanges have closed their doors for failure to meet the mandated requirements.
What does it do?
The licensing will enforce operational requirements for the exchanges.
These were needed to better regulate Bitcoin in order to make it a trusted source of payment and to better protect customers from potential pitfalls.
Specifically these requirements include:
- High standards for cyber-security.
- The segregation of customer accounts.
- The verification of customer identities.
Among other things.
This is good news!
At some point, these things need to be regulated in order to reach mass adoption. Anyone believing otherwise is most likely delusional.
Only being used on the dark market was never going to get Bitcoin to $100k per coin.
The cryptocurrency exchange Quoine, which was also one of the 11 to receive a license, would agree with me:
"We will work alongside regulators towards the healthy development of the cryptocurrency industry within Japan and on a global scale."
The regulators from Japan went on to say that they would be working with exchanges to foster sound market development.
Do you hear that China?
Japan has decided to work WITH exchanges in order to make these things function in the best interest of everyone involved.
Japan has been fairly unique and proactive in their cryptocurrency regulations.
Where the rest of the world is seeing caution signs, Japan is seeing a wonderful opportunity.
Many of these regulations on the exchanges stem from what happened back in 2014 with Mt. Gox. Where investors/customers lost hundreds of millions of dollars worth of cryptocurrency, when the largest exchange at that time, collapsed.
This seems like a much more logical approach to cryptocurrency as opposed to outright banning them. We will see which route other countries decide to go in the coming weeks and months.
Stay informed my friends.
Sources:
https://www.coindesk.com/japans-finance-regulator-issues-licenses-for-11-bitcoin-exchanges/
Image Sources:
https://www.rt.com/business/383101-japan-law-bitcoin-currency/
https://themerkle.com/top-5-cryptocurrencies-in-japan/
https://news.bitcoin.com/new-york-regulator-reports-on-cryptocurrency-licensing-examines-businesses/
Follow me: @jrcornel
Nicely presented, and I agree with your conclusion: in terms of adoption, the Japanese are out in front of the curve yet again.
They know a good thing when they see it!
Yes they do. If the US follows suit, next stop moon-ville.
ohhhhh yah
Now i know, why bitcoin is flying..
Japan has a history of trouble due to the fiat dollar so maybe no surprise. I'm guessing China is just cleaning up and will reboot and renter the game with renewed energy. Whichever way crypto is the future!
I agree. They never would refuse to take a big part of the cake. This "ban" is just temporary and we will see them coming back with drums & trumpets.
That is very good news indeed!
China has always played the long game. They are not silly. It's more that we're getting so use to everything happening immediately we're wanting the next bit of news now, but they will likely be very carefully, methodically formulating their plans, and it won't be based around 2 year election cycles, but 5, 10, 50 year strategies. I very much doubt any of what has just happened is final. One good reason Neo is probably growing though, and probably also a good reason to pay attention to the ones they've allowed to continue.
Right now there's a real danger that everyone is in such a hurry they are forgetting that you need the money you buy your food with to not drop by 40% overnight, and they'll probably be meticulously working out how to achieve that. I would never write them off as only acting out of fear. They are patient, and not to be underestimated.
It is a matter of time and everything will be decentralized.
Agreed. Bitshares + Bisq are leading the way.
No, I mean decentralized, atomic swap and lightening networks.
Blockchain technology is the future. It will hit mainstream sooner than we think. I just dont understand why some people are skeptical or doubtful about this technology. By the way @jrcornel i love your post man! I like the way u blog. Its very professional and with finesse! Keep it up bro!
I commented on Twitter yesterday about this... The beauty of the free market is that when one door closes, three more open up!
As the Chinese Crypto empire falls Japan yet again picks up the ball and runs with it.
Jrcornel that is great news for bitcoin investors. It can only get better.
Japan became an enormous world power with enormous industry output and massive investments
Until that same financial system (DEBT) caused a complete wreckage to its economy between 1990 and 2010. 20 lost years due to the imperfections of the classic fiat system.
Japan will rise in power again, now with a backbone of a PROPERTY based financial system.
Hold on tight everybody, this is gonna get real.
I did read this article when it came hot off the press. What's interesting is how countries who have learned to adopt and adapt, are the ones being more cozy with Bitcoin. Other countries should learn.
This so interesting, i was releaved when you said
Crypto is the future
I agree. It should be considered good news. Same thing with the Korean news that came out today. Cheers!
Its great for japan people...they will fell well with this curency...i like this post
I thought Koreans are banning bitcoin exchanges like China?
They've banned ICO's altogether, but they only monitor the exchanges and prohibited leveraged / margin trading. Especially the latter is great for the market. Less pump and dump, more investment.
Cooler Heads
Great info. I think Japan realized with the Mt. Gox debacle that it is better to be involved with Bitcoin so they can regulate and benefit. Thanks!
Great info, thanks
As Japan is accepting Bitcoin, mass adoption is inevitable
I want btc 😁😁
The best news I ever heard in crypto
Very good structure of post ! Good news too for the Crypto world :)
Post of the day.I hope this post will be in hot list.go ahead bro.best of luck.
Japan has had problems with currency from time to time and massive inflation. Crypto means they can potentially hedge their bets with a currency that is not dependent on their local economy. Very smart IMHO
good for Japan.
Japan has feeling for quality and technic, and when they see they could benefit, they jump in! Will be big overthere !
The opposite approach from China and the right approach. The Japanese are very smart!
I wonder why China has banned this as a legal form of payment... maybe it's the idea of the human tendency to only believe in what is right in front of us. But its important to remain on the road to progress, cryptocurrency is such an overpowering idea and its the future we're headed towards !
It is not fear it is greed its that simple fat cats wanting to protect there interests
Good news, we will follow the course of events.
Great news!
Thanks for this informative post! I just spent three weeks in Japan, and was meeting with some very interesting people in the cryptocurrency space - some of the blockchain entrepreneurs here are under 20 years old (!). I guess video games must have been a great education huh?
One of my contacts told me that Japan has a very high tax on capital gains of cryptocurrency (something like more than 50%)?
Does anyone have information about this?
Thanks for the great post and it is good to have some good news - who needs China when you have Japan taking the lead
That's what I call a competitive landscape.
We usually think of a nation-state being an omniscient power. What about two of them? What if they are all against each other?
There are too many, just like fiat.
Does anyone know how distributed BTC usage is in Japan? Can I buy food? housing and so on? please share links to websites...
Great post!
great news!
"Only being used on the dark market was never going to get Bitcoin to $100k per coin."
I believe that Bitcoin and other crytpo's could possibly do very will in a predominantly dark market. Maybe not 100K, but very well. But I also believe that they would be virtually worthless unless there is legitimate adoption somewhere. At some point you need to be able to covert your cryptos into fiat currency. Or something tangible like precious metals.
If only a handful of countries accept bitcoin, it will continue to increase in value. It may also increase the value of the fiat currencies in those countries . Imagine the value of the yen, if all bitcoin had to be converted to it before being exchanged for dollars or euro's or yuan's.
A governmental war on crypto's will only work if all governments are on board. The more governments on board the more opportunity for the ones who are not on board. It will always be to someone advantage to be in this space.
This is fantastic news. It will only take a few more big economies to get in line to insure not only the survival of bitcoin but it's continued growth in value.
You are a really good writer, i appreciate your post. I also follow you of course ^^
I just want to say :
The Chinese virtual wall is against the human right and i will never change my mind about it.
a little pacific denonciation
nice job!!
These are interesting developments, but still not something that will make you jump with joy. However, it is must to keep eye on all the developments, as these are sort of things that are going to make difference in some way, at some stage.
that's what governments should be doing now, especially #China. Not banning it altogether.
#bitcoinization
http://www.fsa.go.jp/menkyo/menkyoj/kasoutuka.pdf
It is a list released by the Japanese Financial Services Agency.
It is said that there are still changes in the future.
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