Recently the price of BTC hit over 6,000 USD, thanks to Japanese lawmakers. Bitcoin and few other currencies: Ether, Ripple, etc., are a legal tender in the Japan cryptocurrencies law. Merchants across the country can accept the virtual currencies.
Many countries are yet to make clear calls on how to legalize Cryptocurrencies. Often, mindless financial experts are calling the Bitcoin a fraud, and are defaming virtual currencies.
Given the high level of anonymity associated with the Cryptocurrencies, they found extensive usage in illegal markets in the dark web.
Despite, Japan understood and embraced the Bitcoin. Being always good at the technological frontier, the nation looks at the opportunities that Cryptocurrencies bring.
The infamous Japanese exchange Mt.Gox, the most massive exchange in terms of trading volume at that time, became hackers paradise and many people lost their BTC. The lost funds never recovered, and the customers' losses never complemented.
Keeping that disaster in mind, the Financial Services Agency (FSA) of Japan has introduced strong rules and regulations. Every exchange has to obtain the license to continue the operations. The FSA has formed a committee of 30 people to scrutinize the applications.
A thorough analysis of every Cryptocurrency exchange will be conducted based on three main factors: Know Your Customer (KYC) compliance, maintaining segregated wallets, and security standards employed.
Also, the Cryptocurrency exchanges should conduct audits regularly, and reports shall be submitted to FSA. That means a lot of surveillance put ahead by the Japanese government. Bad guys! Be careful.
Japan Cryptocurrencies Law – Conclusion
This is a great moment for Cryptocurrencies and enthusiasts that a nation is adopting the next financial revolution. On the other side, China has banned Cryptocurrencies. And the BTC value did not shakedown much, proving that one nation or entity cannot control BTC.
If you are visiting Japan for a trip or a business purpose, it’s time to forget about forex cards. Just carry some Bitcoin on your smartphone!