There is no need to specify the state of Japan at this point. It has been said many times that Japan is living in the 24th century, while us foreigners are struggling in the 21st. However, you may find it quite shocking that this small island nation, rumored to be the future utopia, is having its own struggles with finances as well. But no the type of finances you’re thinking of.
The land of the rising crypto
Japan is the birthplace of cryptocurrencies, pretty much everything can be bought with Bitcoin or Satoshi there, so it would raise a question as to why is it so hard to control these digital assets in a country where they’re virtually everywhere? Well, the problem is the same as in the US or in the EU. It’s about classifying the assets, which can be found out with more detail in Benjamin Graham’s book. If they are classified as securities, you can expect the investors to abandon cryptos altogether. The registration of each individual crypto would take way too much time.
Despite this possibility, the crypto companies located in Japan are still clinging to the idea of a crypto license from the FSA. The reason is quite simple. All of these companies were dependant on the massive volatility that cryptocurrencies offered since they have been relatively stable in the past few months, it’s easy to say that the revenue of these companies has been on a freefall alongside Bitcoin. There is something they need to think of and a license is their best bet, however, the FSA has something different in mind, and these firms may be walking into a trap they can’t get out of.
The FSA has reportedly announced that they will be cracking down on the advertisements from these firms. Now, this may seem too authoritative, but in all honesty, these bans will be welcome as not as many people will fall for the “get rich quick scheme” that some of these companies advertise heavily. There are also talks about the implementation of stricter KYC rules, especially about the reduction of leverage for customers. This means that cryptocurrencies will soon start losing their popularity in Japan, which can also spell trouble for the rest of crypto investors all around the world. However, they will indeed become a lot safer, which could lead to better long-term investments. Overall it is way too early to speculate what is going to happen as all of the new additions to the industry are just unrealized plans, that may be scrapped altogether.