After South Korea and China crackdown of cryptocurrency, it is now the Japan as the crypto haven.
Following the controversial banning of the trend crypto trading in South Korea, it moves Japan becoming the world’s hotspot for cryptocurrencies.
It can be remembered that Japan was one of the early adopters of bitcoin with the crypocurrency viewed as a credible payment method and and with Tokyo yet to regulate the digital token investors are flocking to the country.
As of now, it has grown to become the world leader in bitcoin trading and now accounts for 40 percent of the global total of transactions.
Amid a worldwide crackdown on bitcoin, Tokyo is now considering whether or not to focus on protecting consumers from wild fluctuations by implementing regulation in price or preserving the country’s reputation for innovation.
The connections between bitcoin and scams, tax evasion, money laundering and funding terrorism have raised concerns for most countries but so far Japan has not implemented any restrictions on bitcoin.
Lots of traders are exploiting Japan’s looser regulations as the country attracts crypto enthusiasts.
According to Takahide Kiuchi, an executive economist at Nomura Research Institute who resigned from the Bank of Japan’s policy board last year believes that the crackdowns implemented by other countries have led to funds being directed to Japan instead.
“This had led to moves to transfer investment money to Japan, where regulation is relatively slack,” Kiuchi said.
Meanwhile, Japanese finance minister Taro Aso believes that not all the things in a society must be regulated.
“I don’t think it is good to regulate anything and everything,” Aso said.
As of posting, South Korea is currently debating a potential ban on bitcoin trading due to concerns over money laundering and tax evasion.
Also, China is currently trying to cut down on the amount of bitcoin miners in the country as the cryptocurrency process is using up too much of the country’s electricity.