Japan’s Financial Services Agency (FSA) has finished the process of approving the country’s exchanges. This means that there are now a total of 21 regulated crypto exchanges in Japan.
Why Was This Necessary?
There were a number of exchanges in operation in this Asian country before the new regulations come into force with the Fund Settlement Law and Payment Services Act in May, 2017. These laws made cryptocurrencies like Bitcoin legal but also forced exchanges to obtain a license.
The existing exchanges were then classed as deemed cryptocurrency exchanges. Since then, the Japanese authorities have been busy approving them under the new legislation. In the mean-time, they were allowed to continue their business while awaiting approval.
Not all of the crypto exchanges in Japan have received a license under the rules. For example, it was reported in 2018 that FSHO was forced to shut down their operations in the country.
The Last Deemed Exchange
The final exchanged that was operating before regulation was introduced has now been given the green light. This is the Tokyo-based Lastroots. It has picked up the 21st FSA license.
Lastroots began life in March of 2017, just before the new crypto rules came into force. They applied for a license later on in the year but have had to wait until now to receive approval. This company employs close top 50 workers and runs the C0ban crypto exchange in Japan.
Other legal exchanges in the country include bitFlyer, Bitbank, Huobi Japan and Tech Bureau.
How Will This Affect Japanese Crypto Users?
Anyone who wants to use cryptocurrencies in Japan has the peace of mind of knowing that the system is fully regulated. This makes it one of the few countries with a clear legal framework that includes fully licensed exchanges.
Naturally, this means that Japanese consumers can feel far more comfortable when using Bitcoin and other digital money. While China has cracked down on cryptocurrencies and South Africa is reportedly ready to so the same, Japan is one of the nations that most welcome cryptocurrencies.
It is estimated that about 10,000 businesses here already accept Bitcoin payments, including electronics retailers and airlines. There is also talk of the Mitsubishi UFJ Financial Group, the eighth-biggest bank on the planet and the largest in Japan, creating a stablecoin called MUFG Coin.
With a higher degree of clarity on which crypto exchanges in Japan can be legally used, it is likely that even more people start to use digital money. The Japanese approach to regulation also provides a model for other countries to follow if they want to smoothly legalise cryptocurrencies.