With the legal changes designating bitcoin as a form of payment and the regulatory umbrella becoming organized for cryptocurrency exchanges in Japan, as many as 10 new entrants to the market are on the way says the Nikkei Asian Review.
Popular exchanges such as bitFlyer, Coincheck, and Bitbank will see established public companies such as GMO Internet, SBI Holdings, Kabu.com Securities and Money Partners Group establish cryptocurrency platforms.
In recent weeks we have seen established players Coincheck and Bitbank add more crypto assets to their exchanges, namely LTC, ETH, and DASH. While bitFlyer, the largest provider in the country dominates in margined BTC/JPY trading.
Beginning in July, Japan’s consumption tax will no longer apply to purchases of digital currencies. Exchanges in Japan have also been required since April to obtain a special license, which has requirements for banking and asset supervision. An SBI Virtual Currencies representative told Nikkei, “we didn’t even have minimum guidelines back in 2014, when the bitcoin exchange Mt. Gox collapsed, so users will now feel more secure.”
After Tokyo-based Mt. Gox went bankrupt, many were dim on bitcoin in Japan. This is now a distant memory as the Japanese market has become the largest market in the world for bitcoin trading. This is due in part to the progressive regulatory nature of the Japan FSA, leading the way forward in a regulatory apparatus more so than any other G20 country.
Also, innovative cryptocurrency exchange insurance mechanisms have been introduced, to give users more peace of mind. With decent regulation and insurance, alternative digital currency is being allowed to grow in Japan.
About 18 companies are planning to apply for the bitcoin exchange license, says the Japan Cryptocurrency Business Association. This encompasses more than 10 companies new to the market, plus existing exchanges like bitFlyer. Bitcoin reached all-time highs yesterday including against the Japanese yen where it now trades at 166,000 JPY to 1 BTC.
Below is a screenshot of bitFlyer’s lightening platform where users can trade BTC/JPY, ETH/BTC and margin contracts of BTC/JPY: