China clamped down on cryptocurrencies in many regards in the past year and continued to do so in many regards this year. They are now looking forward to dismantling the infrastructure of the crypto-community in China by having a tighter watch on financial and other institutions which help to facilitate transactions or help in some other manner. At the time of this initial ban, the trading activity in China was rather significant, commanding a large portion of the global crypto trade. Citizens in the country did not only take part in trade but also participated in mining and other activities that contribute to the system as well. Now ICO’s are out, exchanges are heavily curtailed, and mining is a topic that is up in the air. The crypto scene is evidently not as strong as it were and has thus shifted over to others taking up the mantle.
The most notable of these countries has been Japan, a country that made the news rounds for making Bitcoin as legal tender and creating legislations clarifying the stance of their government on Bitcoin and its role in their economy. They have paved a way, over the years, to make their country one of the most, if not the most, favorable country for one to set up crypto operations and not have significant uncertainty from a regulatory standpoint. This, of course, has been driven by the people of Japan, they seem to be very involved in the cryptocurrency arena and so large institutions like the government and companies located in Japan have taken notice and have catered to their citizens or customers, respectively.
Regulatory Bolstering provides added confidence
These movements have set up Japan as a country that could be a large contender in the space of cryptocurrency going forward if they continue to find ways to innovate and keep the different players in the community there. They have already attracted many exchanges from China after the clampdown and have some major players of their own, exchanges like bitFlyer who continue to grow and expand.
Japan has also been involved in keeping a sort of checks and balances on the organizations that are operating in their country, as was witnessed with the case of Mt. Gox incident and more recently, the Coincheck incident.
This legal system and enforcement allow for individuals to trade with more confidence because they know that they will be backed by a regulatory entity if something were to go wrong. These sort of assurances are necessary for a growing sector where cybercrime is an issue that causes strong concern.
Cash is still king for transactions
Despite their love for crypto, reports suggest that they are still in the habit of holding cash, more than thirty percent of their Bitcoin trading came from that of denominations in Yen. It seems to have risen to close to sixty percent. Analysts state that consumers still use cash to transact and over fifty percent of transactions take place with cash.
Cash may start to go out of favor as the government pushes for more use of fintech as slowly being done in countries like India. If the Japanese government is promoting fintech, it may be possible that cryptocurrencies could be a crucial part of its push.