Analysis: Japan’s “easing” regulation, the largest Bitcoin market in the world, is a blessing?

nBankruptcy commentary: At present, the volume of transactions in terms of Japan has developed into the world’s largest bitcoin market, and the country’s regulatory policy on cryptocurrencies have become more relaxed, giving the exchange more freedom, which will bring its consumption Protection measures are sufficient questions. But strict regulation of such rapidly growing markets as bitcoin may slow the exponential growth of the entire cryptocurrency market. So, whether “easing” or “austerity”, the point is also that the global cryptocurrency market itself must mature so that investors can make good and bad investments and make the right investment decisions.n
nTranslation: Clovern
Koji Higashi, IndieSquare co-founder and Japan cryptocurrency researcher, said that Japan, which is the world’s largest Bitcoin market in terms of daily trading volume, has created friendly and liberal regulatory requirements for Bitcoin companies and investors.n
However, although the Japanese government has recognized the legitimate status of Bitcoin as a currency and accepted it as a legal payment method, other mini-cryptocurrencies (copycat currencies) currently enjoy the same treatment as bitcoin. Higashi stressed that the Japanese government’s protection of consumers adequacy or not is questionable, because now the average consumer can consider the use of small-scale copycat Bitcoin as a substitute.n
Higashi wrote:n
n”In general, Japan’s regulation can be said to be more relaxed and given more freedom to exchanges, but its effectiveness in consumer protection is debatable, and the industry feels more like a top-down financial industry top-down) management strategy, and the development of technology did not catch up with speculative demand. “n
nFundamentally, Higashi believes that the Japanese government’s degree of freedom for Japanese crypto-currency markets and trading platforms has prompted Japanese consumers to believe that any currency listed on a regulated exchange is a legal substitute for Bitcoin Productn
Higashi added:n
n”Here’s an example that can help you understand how loosely the official definition of cryptocurrencies is: Pecash, like bitcoin, is classified as a” best-in-class “cryptocurrency and can be legally traded and sold on a licensed exchange.”n
nHowever, the relatively obscure and small-scale copycat, like Pepecash (not included in CoinMarketCap’s 100-strong cryptocurrency list), can mislead investors into believing Pepecash is a major cryptocurrency and is bitcoin Of the competition currency, but in fact it is not.n
Is freedom not good for the market?n
On the contrary, the Japanese government’s freedom to provide local cryptocurrencies may benefit the bitcoin and cryptocurrency industries in Japan as it allows the market and consumers to decide whether certain cryptocurrencies are legitimate.n
The United States and other markets strictly enforced a series of laws and regulations such as “Know Your Customer (KYC)” and Anti-Money Laundering (AML) policies, and even forced many businesses out of business. For example, the state’s Bitlicense regulatory framework has forced ShapeShift, Bitfinex, Kraken, the state’s top three cryptocurrency exchanges, to pull out of the region because of inefficiencies and less-than-friendly regulation.n
Like first digital tokens (ICO) tokens, the global cryptocurrency market must mature itself so that investors can distinguish between tokens and valid items that you want to make quick money, copycat currency and cryptocurrencies , And then make the right decision.n
Stringent regulation of such rapidly growing markets as bitcoin may slow the exponential growth of the entire cryptocurrency market. In this sense, the Japanese government is very beneficial to the friendly and flexible supervision of cryptocurrency firms and investors.n
Although, as Higashi emphasized, the Japanese market lacks regulation of investor protection, it is important to recognize that it is precisely because of its pragmatic regulation that Japan is now the largest Bitcoin market in the world. At the same time, Japan is still the only one that markets the market with a national license to secure currency exchanges.n

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