Japan has always been a hotspot for Bitcoin, but now there’s data to prove it.
World Leader
Japan’s Financial Services Agency (FSA) has officially released data which proves that the country is one of the foremost leaders in the world of Bitcoin trading.
According to the country’s financial watchdog, a minimum of 3.5 million people was trading digital currencies on Japan’s 17 domestic exchanges at the end of March. The data also shows that a resounding 84 percent of those individuals fall between the ages of 20 and 40.
The commonality in age does not come as a surprise. Earlier this month, Bitcoinist reported on New R25’s questioning of 4,734 male employees in Japan, aged 25-30, between January and March of 2018. The respondents’ answers revealed that approximately 14 percent owned some form of virtual currency, while 90 percent of those claimed they bought it as an investment.
The FSA also revealed that Bitcoin trading volume in March 2017 was $97 billion. As a point of comparison, the world’s largest cryptocurrency by market capitalization was trading at $22 million three years prior.
Likewise, the trading of margins, credit, and Bitcoin futures was up to $543 billion last year, compared to just $2 million in 2014.
Winning the Race
The FSA’s report comes at a time when Japan is making every effort to lead the world in effective cryptocurrency regulation. Most recently, the country unveiled guidelines for effectively regulating Initial Coin Offerings (ICOs) while still ensuring positive growth.
The country has also notably been both talking the talk and walking the walk.
Late last month, the FSA ordered both Tokyo GateWay and Fukuoka-based Mr. Exchange to make significant improvements to their data security on March 8th. Both exchanges were also ordered to improve various other safeguards which were found to be insufficient. Neither exchange was able to comply, leading to the closure of both and the return of users’ cash and digital assets.
The aforementioned exchanges joined the ranks of three other Japanese exchanges — Raimu, bitExpress, and Bit Station — forced to cease operations following the relatively new law which forces Japanese cryptocurrency exchanges to register with the FSA. Currently, 16 exchanges are registered with the financial watchdog.
What do you think about Japan’s approach to cryptocurrency and the regulation of its trading? Do you think other countries should model Japan’s efforts? Let us know in the comment below!
Images courtesy of Bitcoinist archives.