The ancient island of Japan, a millennia-old kingdom, has been a leader in world financial trends for decades. Its fiat currency, the Yen, has always been one of the more stable currencies of Asia and indeed the world, lauded by analysts a great option for investors. Now, Japan has also become a major advocate for blockchain technology and cryptocurrency advancement.
The now famous name of Satoshi Nakamoto, widely attributed to be the creator of blockchain technology and Bitcoin, is allegedly a Japanese national. Japan could therefore be described as the “mother of blockchain”.
The island nation quickly welcomed the new innovations in finance and supported the boom that followed blockchain technology. The country has spent years developing legislation to better monitor the usage of cryptocurrency.
In April 2020, Bitcoin.com reported that Japan had adopted new regulations regarding cryptocurrency. These regulations are expansive and broadly interpreted. Japan created these new rules in an attempt to halt the growth of unlicenced cryptocurrency platforms, which it forbids from trading with Japanese nationals.
Japan’s crypto exchanges
Bitcoin.com reported in March 2020 that Japan had 23 registered cryptocurrency exchanges operating in the country. The state obliges all Japanese cryptocurrency exchanges to register with its Financial Services Agency. This came after Japan legalised the use of cryptocurrency as a means of payment in 2017.
Skalex reports that the Japanese government was amongst the first in the world to show support for cryptocurrency development. The rest of the world had still largely ignored crypto at the time. Furthermore, Japanese citizens were amongst the first in the world to start trading cryptocurrency. This was before the famous coins we know such as Bitcoin and Ethereum had the value they do today.
Japan will always remain in history as the original home of cryptocurrency. This is true even as neighbouring countries such as China and those in Central Asia rise to become environments welcoming of blockchain innovation.