Sayonara, Japan’s Cryptocurrency Market

Another GOX happened at Zaif. It reminds me an article I wrote ealier in this year. To say the same thing again, I copied the article to Medium.

Binance

The first is that the cryptocurrency exchange Binance has ceased its developments in Japan. They withdrew from the Japanese market after a warning from the Financial Services Agency that made it sound like they were committing a crime.

They had already achieved remarkable results in the industry. It is true that by skirting certain regulations and taxes, they weren’t competing on a level playing field with other businesses. However, they were a genuine fin-tech company that was an industry leader in innovation. It is regrettable that their expansion into Japan has come to an end.

I don’t view this incident as a major loss in and of itself. The outcome was inevitable if they weren’t going to abide by the rules. However, a company as aggressive as they are will surely grow in the future. The fact that Japanese businesses and clients won’t be involved with that growth will be a major loss. Worst of all is the fact that a booming market has left Japan.

Coincheck

Kraken

A Very Disappointing Response in Japan

There was also a report by the Nikkei that the Financial Services Agency would change their policy and exert more control over the cryptocurrency industry. By only focusing on restrictions rather than promoting advancement, Japan will lose out on both innovations as well as important exchange markets. Can innovation come from a country that takes that kind of stance? I can’t imagine many people will want to bring their companies to Japan with how the current market conditions are.

Thankfully there have been many different cryptocurrency companies from around the world who have eagerly entered the Japanese market, but I don’t see that trend continuing. With the population decreasing and economic growth in constant stagnation, Japan will have to part ways with its promising cryptocurrency markets.

The latest round of regulations might reduce the number of problems that occur in the industry. It may also prolong the lives of the existing business operators. On the other hand, it will prevent innovation from occurring and new ICOs from being offered. This is a very uninspiring development, and at this point, I think it’s best to say SAYONARA to the Japanese market. Pretty soon we’ll be reminiscing about the days when Japan boasted a flourishing, world-class cryptocurrency market.

This is a truly disappointing development. Although I’m not personally affected by it, it’s still disappointing.

Original article I wrote a couple of months ago:

iAm Hiro SHINOHARA. Entrepreneur, hacker, otaku.

iAm Hiro SHINOHARA. Entrepreneur, hacker, otaku.