Japanese Bitcoin companies target Mrs. Watanabe, $40 trillion market waiting to be developed

According to foreign media reports, Japanese companies are rushing to register with the Financial Services Agency (FSA) to provide bitcoin products or services. Their goal is to attract Japanese retail investors, the so-called "Mrs. Watanabe" (Note: a synonym for Japanese housewives who manage household expenses, similar to Chinese aunts), who currently favor the $40 trillion foreign exchange margin trading market.

The scramble to register bitcoin businesses

Since the Japanese government began recognizing Bitcoin as a legal payment method on April 1, online exchanges, funds and remittance companies have begun competing to register Bitcoin services with Japan's Financial Services Agency (FSA).

“The process is expensive, demanding, contains many unobtrusive difficulties and not all applications are successful, but the rewards can be huge,” the Financial Times reported.

It is reported that on October 1 this year, any Bitcoin exchange or remittance business that wants to operate in Japan must register with the Financial Services Agency (FSA) of Japan and submit annual audits. These companies must comply with new rules, such as Know Your Customer (KYC) and policies to separate user funds.

$40 Trillion Untapped Market

Once registered with Japan’s Financial Services Agency (FSA), these companies will be able to offer their Bitcoin services and products to Japanese retail investors.

According to a survey released by the Bank of Japan in September last year, the average daily turnover of Japan's foreign exchange market is US$399 billion, which means that Japan's annual foreign exchange turnover is approximately US$145 trillion.

The Financial Times reported that Japan’s foreign exchange margin trading volume is about $10 trillion per quarter, or about $40 trillion per year, and also pointed out:

“The most volatile supporters say that a small portion of the margin foreign exchange market moving into bitcoin could spark change.”

Before the Japanese government recognized Bitcoin, these "Mrs. Watanabes" basically stayed away from Bitcoin. They would choose investment products that were easier to understand. The government's recognition of Bitcoin's payment attributes undoubtedly told these "Mrs. Watanabes" some information. They may think that this decentralized currency is profitable.

Mike Kayamori, CEO of bitcoin exchange Quoine, believes that current government regulation of bitcoin could be a boon to the industry, noting:

"These retail investors (Mrs. Watanabe) don't want unregulated investments, they want something regulated and trustworthy."