What country is the leading crypto hub in Asia?
According to the latest data from Japan’s financial watchdog, Japan proves to be the leading crypto hub in Asia. Japan has always been known as one of the most technologically advanced countries in the world. In fact, the Japanese are known as a very tech-loving group as a whole, they don’t have qualms harnessing science to make their lives easier and will fearlessly embrace the latest technology.
It is not surprising then that when the cryptocurrencies were introduced, they became a hit among Japanese investors. While there were no official data available until now, everyone somehow knew that the Japanese crypto market must be huge, especially after Tokyo-based Coincheck’s hack back in January where more than $500 million worth of digital coins were stolen. If that single incident alone would involve such huge amount, the entire nation’s crypto industry must be gigantic.
Japan’s Financial Services Agency recently released data for the first time, revealing just how big the nation’s booming crypto industry actually is. According to the financial watchdog, there are at least 3.5 Japanese investors trading in cryptocurrencies.
The FSA based the figure from data taken from 17 Japanese cryptocurrency exchanges. According to a Coindesk report, the data’s cutoff period is as of March 31, 2018.
FSA’s statistics also revealed that investors in their 20s until 40s account for a majority of Japan’s cryptocurrency investors. According to the report, individuals in their 20s make up 28 percent of the total crypto investors, those in their 30s constitute 34 percent while investors in their 40s account for 22 percent.
The Japanese regulatory agency said that the study aims to bring about greater transparency to the relatively new crypto industry. Since the multi-million Coincheck hacking incident early this year, the financial watchdog is under pressure to come up with an appropriate response and is now in the process of examining the issues surrounding the case and the industry as a whole.
Given Japan’s population size, 3.5 million cryptocurrency investors mean that almost 2.8 percent of the country’s population invests in these digital assets. Even FSA suspects that the actual number of investors could be higher since the data of their study only came from 17 out of the 32 companies dealing with cryptocurrencies.
In terms of trading volume, FSA’s study also revealed that volume rose substantially in just a mere three-year period. Around 2.35 billion yen worth of cryptocurrencies were traded in 2014, but the amount rose to more than 4000 times in 2017 where 10.3 trillion yen worth of digital coins were traded.
In fact, the popularity of cryptocurrencies in Japan has created a shortage of engineers and coders. As a result, salaries for experienced employees increased by 20-30 percent compared to year-ago levels with new coders even earning as much as $100,000 annually.
The disruption in international finance caused by the sudden intrusion of cryptocurrencies into traditional finance evoked different reactions from governments across the globe. Some countries such as China have a cautious stance toward these new financial tools but other countries, after recognizing the new industry’s growth potential have adopted a more positive approach and are even posit courting crypto companies to put up shop in their shores.
Japan is obviously one of these crypto-friendly countries and actually belongs to the top 5 according to a CryptoBriefing ranking. The other four nations are Switzerland, United Kingdom, Netherlands, and Denmark.