Japanese exchange launches fixed deposit service with annual interest rate up to 5%

Japanese bitcoin users will soon be able to enjoy a regular deposit service and earn interest. The Japanese Financial Services Agency (FSA) has not yet issued corresponding regulatory measures as they are still observing whether this service will bring huge challenges to the regular deposit services of traditional banks.

Cryptocurrency users and traders will soon be able to earn interest on their deposits from exchanges, Asian Nikkei reported. This is the first time such a fixed-term deposit account service has been launched in Japan.

Four types of fixed deposit options

Founded in 2014 by Koichiro Wada and Yusuke Otsuka, Coincheck has a record of $160 million in monthly trading, which has given confidence to customers, who are interested in Coincheck’s upcoming deposit service.

The service will provide four options : the first is a 14-day deposit period with an annual interest rate of 1%; the second is a 30-day deposit period with an annual interest rate of 2%; and the third is a 90-day deposit period with an annual interest rate of 3%.

The fourth type has the longest deposit period and the highest return rate, which requires a one-year deposit with an annual interest rate of 5%. This service may be very popular because the interest rate provided by traditional banks has been adjusted to 0 at the beginning of this year.

Demand for Bitcoin

The Financial Services Agency of Japan has claimed that this method of depositing coins does not fall within the scope of banking regulation because Bitcoin is not yet a legal tender. It is speculated that once Bitcoin becomes a common payment method in Japan, the regulator is likely to change its attitude.

As many exchanges in Japan are currently applying for licenses, most of them are likely to provide similar value-added services to customers in the future. The use of Bitcoin in physical stores in Japan has also led to the price of the currency breaking records many times.

If digital currency deposits are successfully launched in the form of fixed deposit accounts, there is no doubt that demand will increase.