Bitcoin is a decentralized digital asset as well as a payment system that came to be since 2008 by Satoshi Nakamoto. Bitcoin system is made peer-to-peer and users transact with each other directly without any form of mediator. Also, being a decentralized payment system or digital asset it is not controlled by any entity which made traders always at risk of fraud in the market. The experience of most Japanese bitcoin traders in the hand of ill-fated MtGox which was formally the world largest bitcoin exchange provider has put most people in fear about trading in any crypto currency in Japan. So, to correct abnormalities and avoid such kind of experience again to bitcoin traders there is new regulation and law in Japan on bitcoin.
Japanese Has Passed Law and Regulation to Heighten Control of Bitcoin Exchange
Following the collapse of the world acclaimed bitcoin exchange provider MtGox the government of Japan has made new law and regulation which will increase legal control over bitcoin trading in Japan. The regulation and law are expected to begin effect as soon as possible maybe in a year time. There is going to a bit change in the legal status of bitcoin and other cryptocurrencies whereby bitcoin can be regarded as a real commodity, or to be valued just like every other asset. That is to say, people can make payment and transfer bitcoin digitally for a real business transaction through their preferred cryptocurrency exchange provider.
The Reactions of the Bitcoin Exchange Providers on the New Regulation and Law in Japan on Bitcoin
There has been a positive reaction from already existing cryptocurrencies exchange providers in Tokyo and other parts of Japan following the new regulation and laws on crypto currencies like Bitcoin and others in Japan. They have gladly accepted the law believing that the regulation will help to improve trust between the traders and the exchange providers. The truth is that the existing exchange providers in crypto currency market are not negatively affected by the regulation and laws made to control and coordinate crypto currency value and exchange.
The Effect of Bitcoin Regulations and Laws in Japan on Other Virtual Cryptocurrencies
There is going to breathe of fresh air in the crypto currency market due to the new regulation and laws which are going to affect not only bitcoin but all other crypto currencies in circulation. Now cryptocurrencies will be digitally transferred and used as means of payment for goods and services with Japan. Also, there is going to be a reduction in the rate of casualty in the market caused by fraud due to strict law and regulation in the market. The volatility of Bitcoin and other crypto currencies will equally be controlled which will help investors to study the market to know the best time to invest through the use of virtual currency.
Cryptocurrency Exchange Start-Ups and the Bitcoin Regulation and Law in Japan
Indeed, start-up crypto currency exchange providers are the ones that will mainly suffer the effect of the new laws and regulation made in Japan on bitcoin and other crypto currencies. The regulations will mandate any start-up company that wants to get into the cryptocurrency exchange list in Japan to register an account and wait for approval.