While Asian countries like China and South Korea continue their “bitcoin sell-off”, Japan is doing the total opposite – embracing cryptocurrency instead of cracking down on it.
The recent Asian suppression of bitcoin cryptocurrency has spread panic among cryptocurrency traders around the world, so much so that this past week its price has fallen as low as $10,000 from its high of over $19,000 during December of last year.
Still, Japan is not undeterred by its Asian neighbors’ move and continues to seek to innovate its use of cryptocurrency.
Many governments around the globe, especially those in Asia, do not agree with Japan’s lax policies towards cryptocurrency and feel that bitcoin’s price rise, in particular, is causing disruption in the global financial systems.
Some of the other potential risks caused by cryptocurrency speculation and exuberance include:
Japan: New Cryptocurrency Leader
Since last year, Japan has been riding high on cryptocurrency as they were one of the first nation’s to dive in headfirst with digital payment methods and policies.
It’s optimism and contrarian strategy has not been misplaced either, as the recent clampdown on bitcoin by other Asian countries has made Japan the world’s largest trader of the cryptocurrency.
Yen to bitcoin transactions currently accounts for roughly 40% of all global bitcoin transactions.
Cryptocurrency Traders Flocking to Japan
It looks like crypto traders may maintain and even increase Japan’s number one crypto trading status as the country continues to hold to its relaxed regulations towards bitcoin and other cryptocurrencies.
Couple that with Japan’s assurance that it has already placed reliable and trustworthy safety features in place for both investors and consumers dealing in cryptocurrencies, and it is no wonder that investors continue to park their money in Japan.
Calculated or Foolish Risk
While encouraging cryptocurrency trade within the country has its benefits like increased trade and improving innovation for related businesses that deal in bitcoin and other cryptocurrencies, countries like South Korea feel that Japan is exposing itself way too much to the potential risks of minimal cryptocurrency regulation.
Yet, Japan does not feel the need to tighten its policies just yet. However, the country’s Finance Minister, Taro Aso, has stated that they are looking for a more balanced approach to bitcoin trading in the near future.
Will Japan’s loosened bitcoin regulations spur the country to maintain its leadership in cryptocurrency trading or bring it to ruins as the inherent risks of non-regulated financial trading has proven to be the downfall of many a market in the past?
Maybe neither will happen and Japan will end up producing a balanced policy that does not eliminate digital currencies but instead encourages and regulates it – lightly, of course – to offer more protection for the country’s citizens and global investors alike who are both consuming and trading in cryptocurrencies within the island nation.