When it comes to Bitcoin and Japan, it is only a matter of time until someone references to the Mt. Gox debacle once again. That is only normal, as the Mt. Gox exchange collapse was a major turning point for Bitcoin as a digital currency. By the look of things, Japan has finally recovered from that debacle, and people are starting to buy Bitcoin in exchanges for Japanese Yen.
Also read: The Legal Status of Bitcoin in Thailand
People Are Buying Bitcoin, But For What Purpose?
Bitcoin exchange volumes in Chinese Yuan and US Dollar are quite easy to explain, as most of these transfers stem forth from people looking to invest in digital currency. Bitcoin presents an excellent way to diversify one’s portfolio, as it can be used as a vehicle to move funds between countries and different currencies in a matter mere minutes.
That being said, things are a bit unclear when it comes to other markets. Granted, the EUR/BTC trading market mostly has to do with investment as well, as there is not too much Bitcoin activity going on in Europe just yet. Then again, people seem to have started taking a liking to the digital currency in Europe as of late, which has nothing to do with the investment aspect per se.
An interesting new contender appeared on the charts yesterday, as Japan seems to buy – or sell – a lot of Bitcoin in the past 24 hours With over 15,000 BTC in trading volume over the past day, Japan has taken the third-place spot from Europe. The only question is: why is this happening right now, and what is going on that we don’t know about?
One thing we do know is how the JPY/BTC market seems to be following the price increase that is happening across all major trading markets right now. Once the Bitcoin price started picking up, more and more traders and investors may have flocked to Bitcoin, so that could explain part of the trading volume increase.
Regulatory Status of Bitcoin in Japan
Japan has always been a relatively quiet country when it comes to Bitcoin, although they have a digital currency-enabled crowdfunding platform called FundFlyer. That platform has not seen any major successes to date, although the team is actively working on making things more appealing. Potential investors are quite wary of investing on this platform, as the legal status of Bitcoin remains in the grey area for the time being.
That situation might come to a change soon, though, as a proposal has been drafted to regulate digital currencies in the country very soon. Part of this proposal would force exchange owners to register with the local Financial Services Agency. Preparations for a legal framework for the regulation of Bitcoin will start on January 4, and it will be interesting to see how these discussions play out.
Source: Imgur (BraveNewCoin)
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