Japan accepts Bitcoin and other many cryptocurrencies. This article will discuss how Japan eventually accepts cryptocurrencies and everything else you need to know about cryptocurrency in Japan.
Japan and cryptocurrency
Japan first embraced cryptocurrency in 2016. As reported by Japan Times, “The Cabinet on Friday approved a set of bills to help banking groups expand their information technology businesses and recognize virtual currencies as having a function similar to real money.” They even immediately recognized Bitcoin and other cryptocurrencies as a new form of digital payments and transfers! Ever since then, cryptocurrency has just grown immensely. Just one year after accepting crypto, Bic Camera, Japan’s electronics retailer, accepts Bitcoin payments in all their stores! While in some countries, using cryptocurrency payments is not allowed up to this date.
Japan Crypto Hack and Privacy Coin Ban
Just one year after legalizing crypto, Japan’s crypto market received a hit where Japan lost 540 million dollars in the first half of 2018 due to the NEM (XEM) crypto hack. In response to the hack, according to multiple sources, Japan announced (also in 2018) that they are banning “private cryptocurrencies.” For those who are unaware, private cryptocurrencies, also known as privacy coins, are cryptocurrencies that offer anonymous transactions. Examples of privacy coins are Verge, Dash, and Monero. While coins that most of us know, like Bitcoin and Ethereum, are public because transactions are transparent. Other than Japan, the Indian government also planned to ban private coins.
Privacy coins will prevent the government from being able to regulate and detect any illicit activities in the crypto market.
Japan quickly became a leading country in crypto
Despite the hack, in the same year (2018), Japan was the third-largest economy to hold Bitcoin. According to research, the yen (Japanese currency) was one of the countries dominating the Bitcoin trading volume, along with the US, South Korea, Europe, the UK, and China. And at some point, from December 2017 to January 2018, the Bitcoin price was valued higher in yen and won (South Korean currency) compared to other currencies. In 2021, Japan reached a 114 trillion yen (almost 1 trillion dollars) market in cryptocurrency, and it’s expected to keep increasing.
Cryptocurrency will keep growing in Japan. Japan Times reported that as of early 2022, Japan is considering making it easier to list digital tokens. Currently, Japan has only 40 approved coins in total. In addition, very recently, on the 3rd of June 2022, Japan passed the bill on stablecoins and will officially work in 2023. The reason for this bill is to protect investors from current crypto downfalls like LUNA and Terra UST. Talks about the stablecoin bill in Japan started in 2021 but eventually got drafted. Although, Stablecoins can only be issued by licensed banks, registered money transfer agents, and trust companies.
Quoting Coindesk, “stablecoins are a type of cryptocurrency whose value is tied to a different asset like dollars or gold to stabilize the price.” The most popular stablecoin is “Tether.” Although this year, Tether had some controversies where people are speculating whether the coin is trustworthy or not. Some people said that this could push other countries to pass a bill on stablecoins as it is considered to be a safe long-term investment.
Japan and Technology
Japan’s quick embrace and adaptation to blockchain technology and cryptocurrency isn’t shocking. Most of us probably know that Japan is one of the leading countries in technology. Japan gave birth to incredible technological companies like Samsung, Canon, Hitachi, and many more!
Sources say that Japan is all about novelty and innovation, and it’s very accurate. Most of the things we see every day originated from Japan, like eclectic rice cookers, bullet trains, washlets (remember when Americans were so obsessed about this?), car navigation, QR codes, and many more. Their ambitions with technology are also because their nation’s economy depends on tourism and technology.
Japan is one of the leading countries in bitcoin and other big cryptocurrencies. Payments and investments in the cryptocurrency have been legalized since 2017. As of late, they have banned private cryptocurrencies and are planning on expanding their crypto market by making it easier to list digital coins. Japan currently has only 40 approved coins in total, while as of the half of 2022, there are approximately 18 thousand cryptocurrencies available worldwide. Despite so, as a leading country in technology, Japan has plenty of room to grow its already enormous cryptocurrency market.
Is Bitcoin legal in Japan?
Yes! In 2020, Japan ranked second in Bitcoin trading volume after the US.
Is cryptocurrency legal in Japan?
Yes! Cryptocurrency is legal in Japan.
Popular cryptocurrencies in Japan?
Bitcoin and Ethereum is probably the most popular cryptocurrency in Japan.
Why did japan ban cryptocurrency?
Japan only banned private cryptocurrencies in 2018.
