Pedro Szekely
On Friday, the Financial Services Agency of Japan (FSA) registered 11 companies as operators of crypto-exchange exchanges. The registered companies must comply with a number of requirements, in particular, they must have a high-quality IT system, separate customer accounts and own funds, and establish the identity of customers to prevent money laundering. The purpose of these rules is to protect investors from fraud and other abuses, and, at the same time, to support innovations in the field of financial technologies.
Among other things, the regulator's approval was obtained by the cryptocurrency exchange bitFlyer, which has more than 800 thousand users. According to the company’s CEO, the introduction of the new regulation consolidates Japan's position as the leader of the Bitcoin market. "Japan gave impetus to the growth in demand for both Bitcoin and services related to crypto-currencies," he said.
It is not the first time when Japan is supporting the digital currency. In April, the country adopted a law that recognizes Bitcoin as legal tender, and some retail companies began to accept it for payment. Last week it became known that Japanese banks are considering a possibility of issuing their own digital currency called J-Coin.
Japan's position sharply contrasts with what China is doing. The regulator of the latter has actually brought the market down. In early September, regulators banned ICOs, and then several bitcoin exchanges said they would stop bidding by the end of the month. In early September, the Bitcoin price reached a historical record of $ 5,000, but then, against the background of news from China, the price of the crypto currency fell to $ 2951. Soon after, it quickly recovered to $ 4,000.
One of the reasons for the sharp drop was that China was the main driver of the Bitcoin market. In the period from 2014 to January 2017, the Chinese market accounted for 90% of the world trade in Bitcoins. Now, however, trade is distributed in different countries of the world more than ever before, and, according to CoinDesk, the yen and dollar account for a larger volume than the yuan. The volume of trading in China is declining. After exchanges were closed, Chinese investors started to sell and buy currency on peer-to-peer sites like LocalBitcoin and through mobile applications. Bitcoin, valued in RMB, is now actually trading at a discount to Bitcoin valued in other currencies, which created a possibility of arbitrage for some investors.
"Japan and the United States have proved that Bitcoin does not need China to flourish. Although a number of states refuse to recognize Bitcoin, there are many different opinions on the market in general. This industry is mobile, striving for prosperity, it will develop in the most favorable jurisdictions," said Charlie Hayter, executive director and founder of the CryptoCompare website.
source: cnbc.com
Among other things, the regulator's approval was obtained by the cryptocurrency exchange bitFlyer, which has more than 800 thousand users. According to the company’s CEO, the introduction of the new regulation consolidates Japan's position as the leader of the Bitcoin market. "Japan gave impetus to the growth in demand for both Bitcoin and services related to crypto-currencies," he said.
It is not the first time when Japan is supporting the digital currency. In April, the country adopted a law that recognizes Bitcoin as legal tender, and some retail companies began to accept it for payment. Last week it became known that Japanese banks are considering a possibility of issuing their own digital currency called J-Coin.
Japan's position sharply contrasts with what China is doing. The regulator of the latter has actually brought the market down. In early September, regulators banned ICOs, and then several bitcoin exchanges said they would stop bidding by the end of the month. In early September, the Bitcoin price reached a historical record of $ 5,000, but then, against the background of news from China, the price of the crypto currency fell to $ 2951. Soon after, it quickly recovered to $ 4,000.
One of the reasons for the sharp drop was that China was the main driver of the Bitcoin market. In the period from 2014 to January 2017, the Chinese market accounted for 90% of the world trade in Bitcoins. Now, however, trade is distributed in different countries of the world more than ever before, and, according to CoinDesk, the yen and dollar account for a larger volume than the yuan. The volume of trading in China is declining. After exchanges were closed, Chinese investors started to sell and buy currency on peer-to-peer sites like LocalBitcoin and through mobile applications. Bitcoin, valued in RMB, is now actually trading at a discount to Bitcoin valued in other currencies, which created a possibility of arbitrage for some investors.
"Japan and the United States have proved that Bitcoin does not need China to flourish. Although a number of states refuse to recognize Bitcoin, there are many different opinions on the market in general. This industry is mobile, striving for prosperity, it will develop in the most favorable jurisdictions," said Charlie Hayter, executive director and founder of the CryptoCompare website.
source: cnbc.com
