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Japan Could Represent the Future of Cryptocurrency

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Japan has quickly emerged as a powerful hub for cryptocurrency. Liberal policies, a budding investment community and full embrace of blockchain technology makes a strong case for the world’s third-largest economy becoming the center for everything crypto. Now, data on crypto trading as well as proposed guidelines for initial coin offerings (ICOs) have underscored Japan’s leadership pace.

Crypto Trading Flourishes in Japan

While Japan has for some time been a major hub for cryptocurrency trading, a new report from the country’s top financial regulator has provided actual numbers on usage.

The Financial Services Agency (FSA) recently reported that at least 3.5 million people were trading crypto assets on one of the nation’s 17 domestic exchanges. The vast majority, some 84%, are between the ages of 20 and 40.

What’s more, trading volumes on domestic exchanges jumped from $22 million in March 2014 to a whopping $97 billion in March 2017. Over the same period, trading on margin surged from $2 million to $543 billion.

Japan has quickly emerged as a powerful hub for cryptocurrency. Liberal policies, a budding investment community and full embrace of blockchain technology makes a strong case for the world’s third-largest economy becoming the center for everything crypto. Now, data on crypto trading as well as proposed guidelines for initial coin offerings (ICOs) have underscored Japan’s leadership pace.

Research Group Proposes ICO Guidelines

A government-backed research group recently put forward several proposals for regulating the ICO market, including guidelines on consumer protection and anti-money laundering.

Tama University professor Takuya Hirai, who is also a member of Japan’s House of Representatives, spearheaded the proposals in collaboration with industry advisers representing ICO Business Research Group and bitFlyer, among others.

In a report published earlier this month, the group said: Appropriate rules must be set to enable ICO to obtain public trust and to expand as a sound and reliable financing method,” adding that their efforts are intended to propose “rules needed to establish ICO as a sustainable financing method based on discussions conducted by the research group.”

The research group intends to bring more transparency to the ICO market, which has been plagued by malicious actors and overhyped projects. According to various estimates, ICOs raised between $4 billion and $6 billion last year alone. The market is poised to break that record by the end of the second quarter, based on recent industry trends.

 

 

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