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Cryptocurrency regulation lesson for western government by Japan

Cryptocurrency regulation lesson for western government by Japan

Bitcoin provokes conflicting emotions in people (fear, excitement, elation, and doubt). Since governments are regulating new things, Bitcoin presents a challenge. Well! How to regulate such unregulatable creation? Here, Japan has taken the reverse approach.

Land of the Rising Coin

Since, April, Bitcoin has been an official legal payment, while 4500 store starts to accept cryptocurrency. However, Japanse shoppers can spend bitcoin in range of stores that help to raise awareness. ATMs-BTMs that exchange fiat for Bitcoin is widespread all over the country.

Moreover, Regulators of Japanese stepped in, instead of trying to use cryptocurrency they enacted regulations. Thus, mandated exchanges to maintain customer funds separately, manage capital reserves, and implement KYC procedures. Nonetheless, many western governments have dithered over cryptocurrency regulation.

Also Read: Japan’s SBI Group Introduces Eight Crypto Businesses

Regulators Mount Up

This week, the first public comments issued by Donald Trump’s treasury secretary about Bitcoin. His primary concern was with ensuring that bitcoin couldn’t be used “for illicit activities”. He also appealed the usual canards that government officials prone to uttering in the money laundering, terrorists and dark web.

Particularly, Bitcoin is mercifully free from centralized attempts at interfering with code. Still, the government restricts entry and exit points from the fiat world. Officials haven’t lain the banhammer on Bitcoin, though there is a bit of support.

Also Read: Japanese IT Firm GMO plans for an Initial Coin Offering

Opportunity or Threat?

Japan is a tech-savvy nation that has an appreciation of the transformative power of emerging technologies. Since it follows digitally inclined countries must be the first to embrace cryptocurrency. Therefore, in Europe, Estonia, its own cryptocurrency is yet another positive aspect.

In the country of Japan “Bitcoin regulation” means taking measures to safeguard citizens whilst. Thus, encouraging the responsible use of Bitcoin and allowing crypto companies to get on with business.

Thumbs Down from Down Under

Japan’s Justice minister in Orwellian terms,

“Stopping the movement of money to criminals and terrorists is a vital part of our national security defenses and we expect regulated businesses in Australia to comply with our comprehensive regime”.

Moreover, Japan is always being a step ahead in weighing Bitcoin. Since it is strict with KYC regulations and ICO guidelines. Therefore, it is hardened with a wide invitation to exchange owners, crypto developers, tycoons and Bitcoin enthusiast that “We’re open for business”.

Read Next: Japan’s 3 megabanks ‘Field Trial’ for P2P money transfer on blockchain

Image Source: Japanese Cryptocurrency Regulations

Author

Sara Noah

Sara Noah is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.