Japan's Bitcoin industry is unstoppable, and the Ministry of Finance's new regulations support the development of exchanges

Shortly after defining Bitcoin and digital currencies as a legal means of payment, Japan has continued to take strategic steps to create a positive environment for digital currency trading and daily buying and selling. Based on the guidelines issued by the Ministry of Finance, several companies in Japan are also planning to set up Bitcoin exchanges.

duty free

Japan has already taken action on a plan that other countries are cautiously considering. Recently, Japan recognized the monetary attributes of Bitcoin and digital currencies, and currently has 18 applicants vying to become a licensed exchange.

The fact that Japan has exempted digital currencies from consumption tax also demonstrates the country’s leadership in technology and that they are serious about creating a positive environment for the development of the digital currency market.

Japan’s Ministry of Finance has set ground rules for exchanges to operate — they must obtain a license to avoid a repeat of the Mt. Gox incident.

The license has been effective since April 2017 and to obtain it, the exchange must comply with Japan's financial and asset management framework rules.

Merchants and investors

At least 10 companies are reportedly planning to launch exchanges in Japan as demand grows. These legally registered exchanges will help boost trading volumes as they are able to provide low-cost, convenient and secure services to local traders.

This year, as more and more merchants begin to accept Bitcoin payments, the impact is twofold.

First of all, Bitcoin has become an investment tool. Second and most importantly, Bitcoin has become a currency that can be used to purchase goods in physical stores.

Clearly, Japan is getting closer to its goal of making Bitcoin a part of everyday transactions, a step that could be another memorable moment for the digital currency since Satoshi Nakamoto published the Bitcoin white paper.

A representative of a company that is looking to launch an exchange said when discussing investment factors:

As the value of cryptocurrencies increases, our customers are beginning to show demand in this area.

Exchanges ready

The companies interested in setting up an exchange are as follows: SBI Holdings (SBI Virtual Currencies), GMO Internet, Kabu Securities and Money Partners Group.

All of the above companies have received a lot of financial support from listed companies, which proves their investment interest in the field of digital currency and their strength is even enough to challenge New York (Wall Street).

It is understandable that they do not want a repeat of what happened to Mt. Gox. A representative of SBI Virtual Currencies explained:

We didn’t set any rules at the time (when Mt. Gox collapsed in 2014), so users feel more secure now.

The Mt. Gox incident could easily become a major stain on the digital currency space, however, Japan sees this as just a past misstep and believes in the potential of Bitcoin and other digital currencies and is setting an example for other countries.