The popularity of cryptocurrency is unstoppable. Despite the ongoing online debate on the risks that digital currency has, it still maintains its acceptance in different industries.
Today, several countries have shown their approval and support in using cryptocurrency. The use of digital currencies by several countries may hold great promise in several key areas. It reassures the healthy business relationship in foreign countries that in turn can create a more solid economic link.
Digital Currency remains a promise of financial freedom and flexibility both in the local and foreign market.
A recent news marks another milestone in the cryptocurrency world as Japan emerges as the largest marketplace in Bitcoin Trading.
Japan has emerged as the largest market for bitcoin trading by volume. This represents a shift from the market dominance controlled by China as a result of the Chinese government blanket banning exchange platforms. Japan, along with South Korea to some extent, now represent major hubs of crypto-finance across the globe.
According to recent data on Cryptocompare, Japan controls 59.77% of the global trading volume. This is over double the bitcoin trading volume conducted in the United States. Currently, the US does 25.97% of bitcoin trading. Japan’s rapid ascent as a bitcoin trading hotbed comes as no surprise, though. The country was poised to adopt this role.
Reasons for Japan’s Growth
One of the primary reasons for Japan’s major appearance on the scene is because of its pro-cryptocurrency attitude. The country has been building its crypto-asset infrastructure for a while, especially since its government has taken a positive stance on bitcoin. The country was one of the first to fully embrace digital currencies by making bitcoin a nationally legal currency last April.
Furthermore, the country just endorsed 11 different cryptocurrency exchanges, including the largest, Bitflyer. They licensed the exchanges with practical and understandable legal framework, making their operations painless and non-burdensome. News.Bitcoin.com covered the story when it broke:
Japan’s Financial Services Agency (FSA) announced they are endorsing 11 different cryptocurrency exchanges. This sets Japan on a path to becoming the headquarters for everything Bitcoin, especially since China recently crippled their crypto market by banning exchanges. This means Japan now represents one of the most cryptocurrency-friendly countries in Asia.
Bitcoin Mining and J-Coin
Besides the interest in bitcoin trading and speculating, Japanese businessmen have become infatuated with bitcoin mining. The financial industry has started eyeing bitcoin mining as a possible source of lucrative gains, but also as a way to further develop Japan’s bitcoin dominance. Both GMO and DMM.com — which own exchanges — said they were getting into the space, although they would search for bitcoin mining locations where electricity costs are lower.
Lastly, the Japanese government and banks have begun work on J-coin, a nationalized cryptocurrency that would sit alongside the Yen. An MIT article explained banks would use it to get extra customer information and create a streamlined, digitized financial system within Japan proper.
All of this cryptocurrency activity in Japan has made it a hot spot for deepening the market penetration of bitcoin trading. It has also made Japan along with South Korea undisputed leaders in forward-thinking bitcoin infrastructure development.
Japan and South Korea’s Effect on Bitcoin Price
This new dominant position Japan has found itself in has implications for the future of Bitcoin’s price. South Korea has likewise managed to metamorphose into a major bitcoin trading paradise. According to various news sources, the bitcoin price has managed to maintain its upward trajectory as a result of these markets.
Previously, the price was almost totally reliant on Chinese markets. Luckily, both Japan and South Korea were already poised to take the reigns as the new Asia bitcoin market presence. China used to control roughly 10 to 13 percent of global trades before being banned, one news source claimed.
Now it appears the overall price will be in the hands of these two Asian powerhouse markets for some time. This looks like good news, though, because both countries harbor optimistic and positive perspectives on bitcoin and other cryptocurrencies. The future is bright with the image of a large red sun.
Via News Bitcoin