Japanese Regulator Sees Sharp Spike in Cryptocurrency Queries

Financial Services Agency’s [FSA] counseling office for Financial Services Users on Friday scored a total of 3,559 inquiries about cryptocurrencies during the Q1 2018, which is around three times the number of inquiries in the initial few months of 2018. The number clearly justifies the growing interest in cryptocurrencies since last year.

Japan has always been open towards cryptocurrencies since April 2017 after the country revised its Payment Services Act which includes legally defining virtual currency as a form of payment. The law also pertains to the exchange of virtual currency in Japan once registered with the Financial Services Agency [FSA] of Japan.

Following the Bitcoin’s trend, Ethereum, Bitcoin Cash, Ripple, and Litecoin are the next most popular cryptocurrency networks. After the launch of the Japan Virtual Currency Exchange Industry, the new law licensed the first 16 virtual currency exchanges giving them the power to amend rules and develop standards for ICOs.

The reports suggest:

“The recent count forms about 29 percent that is over 1,000 queries related to the rules and regulations involving crypto space.”

According to FSA’s April reports taken from a survey of 17 cryptocurrency exchanges, the country has around 3.5 million active cryptocurrency traders with the majority of them belonging to the age group of 20-40 years of age with Bitcoin reaching up to $97 billion last year.

In the aftermath of the Coincheck theft, the FSA are doing their best to make the network more secure when it comes to cryptocurrency exchanges by preventing money laundering and protecting its customers. Their solutions pertain to creating a two-factor authentication, which means when it comes to a two-party payment channel it allows more users to interact with one another in terms of their funds which significantly help reducing transaction costs allowing more transparency throughout the network.

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