Japan’s cryptocurrency industry is of great interest to a lot of people. With the country legalizing Bitcoin and consorts as legal forms of money, there lay ahead a host of exciting opportunities for investors. Even so, the current bear market run can be felt in this region as well but despite these temporary setbacks, the optimism in Japan remains rather high.
The Role of Japan in Cryptocurrency
Asia is a very curious region when it comes to cryptocurrency. This is especially true when talking about regulation, as no two countries see eye-to-eye on matters of digital assets in this part of the world. South Korea has regulated cryptocurrency trading but will ease on its regulation fairly soon. China has prohibited all CNY-based trading but may reverse that decision as well.
Japan has taken a far more open-minded approach from day one. Rather than curbing cryptocurrency, the government decided to legalize it as a means of payment.
However, this also means that taxes need to be paid on all transactions by consumers and businesses, who for the most part, seem to be content in doing so— at least for the time being.
Japan’s Crypto Outlook Remains Positive
It is interesting to keep tabs on the market sentiment in Japan as nearly all of the big crypto players have lost a lot of value in 2018, thereby offsetting a sense of despair across the US and Europe. In Japan, however, the optimism hasn’t waned all that much. In fact, the industry is growing despite the ongoing negative market pressure.
Additionally, it is important to keep tabs on consumers and their reaction to this market slump since now seems to be an excellent time to buy into Bitcoin and other currencies due to such low prices. It appears that this exact sentiment is present in Japan as well, which shows the bigger picture still looks good.
There will also be more competition in the Japanese cryptocurrency exchange industry with six government-approved exchanges set to be listed on the TSE (Tokyo Stock Exchange) soon. This news comes on the heels of SBI Group, Line, and Yahoo! Japan also launching their exchange ventures at some point in 2018.
The price of Bitcoin and other currencies is mainly driven by speculation, which seemingly stems from the US, Europe, and South Korea. Japan, on the other hand, represents a small portion of the global cryptocurrency community and unless the country becomes a go-to nation for cryptocurrency trading, its impact will remain minimal.