Japan: New Bitcoin Center

nRunaway Comment: The mysterious creator of bitcoin appears in Japan, while the largest bitcoin exchange in the early days was in Japan, with the last of the most alarming bitcoin loss cases in Japan. While the previous panic had left Japan quiet for some time, the Japanese government’s breakthrough in legislation once again attracted global attention to the Japanese bitcoin market. In any case, from the trend point of view, 2018 will be an important year in the field, from the laws and regulations to support Japan will also become the center of bitcoin.n
nTranslation: Annie_Xun
Yuzo Kano is the chief executive of BitFlyer, one of Japan’s largest cryptocurrency exchange. After working for Goldman Sachs Development and Settlement Systems, Yuzo Kano studied equity derivatives and convertible bonds.n
Here’s an exclusive article he submitted to CoinDesk’s 2017 in Review:n
No matter what kind of negative news impact the community, no matter what happens to the hard fork, no matter what kind of criticism and criticism, bitcoin in 2017 is still strong.n
Japan’s influence is not small. Although the big environment brings vitality to cryptocurrencies, Japan is now the bitcoin hub and the country is central to Bitcoin’s growth. Here once worried about the long-term use of Bitcoin, the security of this new invention.n
2017 is a period of fear disappearing, and Japan plays a very important role in it.n
In other countries, where the bitcoin and blockchain technologies passively react, the Japan Financial Services Agency (FSA) professionally analyzes the technology, establishes clear and fair laws and regulates the virtual currency exchange. This is not a trivial matter. The Bitcoin Exchange is the springboard for bitcoin adoption and virtual currency.n
Return home n
This year Japan came with a series of good news and should understand the country’s deep history of cryptocurrencies. Although we may not know whether Satoshi Nakamoto is Japanese or not, at least the name is Japanese. Japan is the hometown of bitcoin.n
But bitcoin, though deeply rooted in Japan, was once again the center of the most controversy.n
Some say the collapse of Mt. Gox four years ago was the worst bitcoin experience. 650,000 bitcoin, worth about $ 437 million, were stolen at the time and the exchange suddenly closed. The company filed for bankruptcy, affecting 127,000 customers worldwide. These lost bitcoin now cost almost $ 9 billion.n
However, this terrible incident still forces Japanese regulators to intervene and protect consumers.n
It also makes Japan the most avant-garde bitcoin and virtual currency juridical country. Instead of looking at early inexperienced participants in the field, FSA’s understanding of technology lays the foundation for a global understanding that has made bitcoin and other virtual currencies widely recognized.n
On April 1 of that year, the Japanese government amended the Payment Services Act. These BitFlyer-involved amendments are known as the Virtual Currency Act, which, along with other tax reforms, made the three major regulatory measures for 2017.n
1, the legal interpretation of bitcoinn
The Fictitious Currency Act describes and defines virtual currency, noting that bitcoin is an asset and that bitcoin can be used as a payment method.n
However, this act does not make it clear that Bitcoin is a legal currency, which is misunderstood by some people.n
2, the regulation of virtual currency exchangen
The FSA is able to oversee the country’s virtual currency exchange and issue licenses. This consolidates the bitcoin market’s position in Japan with clear rules and consumer protection.n
BitFlyer is proud to be the first licensed exchange in early September.n
3, the other regulatory different actsn
Finally, despite not being part of the fictitious currency act, the tax reform was pushed forward on July 1 and the excise duty was lifted, lifting the barrier for foreign investors to buy bitcoin in the Japanese market. This allows the Japanese market to open to global investors.n
Extends bitcoin and blockchain usagen
But despite Japan’s dominance, the rest of the world should also learn from its research and regulators.n
BitFlyer works closely with government agencies to provide research and information on the applicability of bitcoin and blockchain technologies. These studies, like bitcoin, are stateless and publicly available. BitFlyer also strives to develop the miyabi, a world-class enterprise blockchain. Top speed exceeds 4,000 pens / second. miyabi guarantees tamper, end-result, Byzantine fault tolerance, low latency, no single point of failure.n
These jobs are not buried.n
Japan’s largest interbank clearing house has chosen bitFlyer to demonstrate proof of concept, using miyabi to show how the blockchain can be used to transform the banking industry and create a faster clearing platform. If adopted, Japan’s largest banks will be interconnected through the blockchain to showcase the global deployment of enterprise blockchains so as to create a better and more unified financial world.n
These developments are why we believe 2018 is another major bitcoin year.n
Trading volume has steadily risen in 2017 and prices soared, but above all, the last chance for institutional investors to engage in Bitcoin investments is at hand.n
Even if the Bitcoin ETF was not approved in 2018, the creation of Bitcoin futures would make the market more liquid. More than past derivatives, dozens of trading firms have allowed traditional hedge funds, family offices and even large personal traders to enter the virtual money market.n
These developments make bitFlyer aware of the tremendous opportunity to leverage Japanese liquidity to drive these markets and serve new traders.n

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