Data has been released by Japan's Financial Service Agency (FSA) which showed that Bitcoin trading has made the country one of the top leaders in the world as far as cryptocurrency business is concerned.
A minimum of 3.5 million people were highly involved in the trading of cryptocurrency on Japan's 17 domestic exchanges in late March 2018 and that 84% of those traders fall between the age of 20 and 40 as per Financial Service Agency.
The trading volume of bitcoin increased from $22 million in March 2017 in Japan and also there was a mega upward increase of trading on margins, credit and futures of bitcoin as a fundamental asset from $2 million in 2014 to $543 billion in 2017.
In an effort to remain at the top in cryptocurrency, Japan has released guidelines that will effectively regulate Initial Coin Offerings (ICOs) as it ensures a positive fundamental growth and Investor protection in the field of cryptocurrency.
A report that was written by the government-backed ICO Business Research Group and published by Tama University together with The Center for Rule-making strategies says"ICO is still in its infancy and has no industry practices yet. Appropriate rules must be set to enable ICO to obtain public trust and to expand as a sound and reliable financing method," it went ahead and says "the legal position of ICO is explicitly defined, not clear and accounting/tax issues that are related to ICO remain in a large scale. In some cases, measures for investor protection are not sufficient. Such issues are considered problematic throughout the world. "
The group proposed the "two principles on Issuance of tokens" that focus on investor protection and also laid out the two guidelines for practical operations. It went ahead to propose five principles that will ensure investors to be completely protected during the buying and selling of tokens in Japan.
The Group's report lays out that these proposals and guidelines will enable Japan to lead the world in effective cryptocurrency regulation.
Tokyo GateWay and Fukuoka-based Mr. exchanges successfully joined the ranks of other giant Japanese exchanges like BitExpress, BitStation and Raimu to stop operations following the proportional new law that forces Japanese Cryptocurrency exchanges to fully register with FSA in order to be on the same line like the 16 exchanges that are fully registered with the financial watchdog in Japan. These exchanges include bitFlyer Inc, BMO Coin, Bit Bank, Bittrade, Btc box, Tokyo Bitcoin Exchange, Fisco Virtual Currency, Bitpoint, Money partners, Quione, SBI virtual currencies, Zaif, Bit Arg Exchange Tokyo, FTT corporation and Xtheta corporation.