The premium of Bitcoin in Japan is as high as $1,889. It is wrong to say that zero transaction fees are not the real driving force!

Zero fees attract attention

Some people believe that the recent surge in Bitcoin prices is related to the zero-fee system in Japan’s Bitcoin trading market. Analysts suspect that this zero-fee system may promote the development of the Japanese exchange market and reproduce the previous trading boom of Chinese exchanges.

The two largest bitcoin exchanges in Japan are QUOINE and BitFlyer. They said in an interview that in fact, bitcoin exchanges in Japan also charge fees.

BitFlyer accounts for 67% of Japan’s trading volume and is also the world’s largest Bitcoin exchange. At press time, the premium on its BTC/JPY trading pair was as high as $1,889. Its CEO Yuzo Kano said:

“We charge Bitcoin transaction fees and FX (foreign exchange) ‘swap rates’ (the difference between the spot rate and the forward rate). Therefore, it is difficult for Japan to repeat the Chinese boom in January. And the money is not only flowing into the Bitcoin market, but also into other cryptocurrency markets.”

QUOINE Exchange occupies 10% of the Japanese exchange market. Its CEO Mike Kayamori further emphasized that except for the spot BTC/JPY (Japanese Yen) trading pair, all other transactions require a handling fee. Therefore, the statement that "the current situation of low or zero fees on Japanese exchanges has led to unstable Bitcoin prices" is wrong.

Kayamori said:

“QUOINE charges a fee for trading currency pairs other than the spot BTC/JPY pair . All other currency pairs and margin trading are charged a fee. Due to the high spread, our trading volume in April and May was actually lower than in March.”

Alternative Investment Products Bitcoin

Jon Southurst, a Tokyo-based reporter, noted that against the backdrop of loose monetary policy, well-known institutional investors and ordinary traders are turning to alternative investment products such as Bitcoin.

As Cointelegraph reported on April 24, Bitcoin prices will continue to rise as the Japanese government prints a lot of money. At the time, Welt senior editor Holger Zschaepitz said:

“Given this series of factors, we can conclude that the current rise in Bitcoin prices and the rise in Bitcoin demand in Japan complement each other and develop together.”