AMERICA, October 26, 2019 /EINPresswire.com/ -- Japan is a forward-facing nation concerning the cryptocurrency and blockchain sector. We know this to be true because the country hosted prominent exchanges like the infamous Mt.Gox and others. To be fair, the state may not have known of the importance of Mt. Gox in its initial stages but would undoubtedly have value after the fact.
Legislators in the land of the rising sun deem cryptocurrency as legal, as a form of property, and taxable under different legislations such as the Payment Services Act.
Japan is also a crucial country to the bitcoin and growing cryptocurrency ecosystem today. Further, it is one of the largest markets for speculation and global cryptocurrency-related activity.
Cryptocurrency speculators and investors are taxed on their gains and have more clear guidelines on how they are taxed.
We also know that cryptocurrency exchanges can operate with no repercussions. The law recognizes them and provides them with streamlined options to be fully compliant with the state. But the country has continued to grow and become more sophisticated in how they deal with cryptocurrency exchanges and systems.
The government must be more careful and observant as more value accrues to the Bitcoin and cryptocurrency space. The state has stepped its regulation efforts to preserve and protect investors from hacks by regulating and improving the quality of exchanges.
Governmental bodies such as the Japanese Financial Services Agency now acts as a watchdog and regulates exchanges, ensuring compliance, security, and investor safety. The Japanese Virtual Currency Exchange Association is just one of the ways that the government has refined its approach and made a difference in the lives of those in the cryptocurrency sector.
Japan and its regulatory bodies have been relatively quiet for some time while working behind the scenes and paying attention to this growing sector. But now, the country has stepped up its efforts yet again.
The Financial Services Agency (FSA) noted it would begin creating a set of standards to guide more significant funds when allocating capital to the cryptocurrency sector.

The Financial Services Agency Begins To Implement Standards For Large Scale Cryptocurrency Investors

The state-related agency issued a release to the public, notifying the relevant audience of its recent initiatives regarding the emerging growth sector. The announcement, which was shared with the public on the 30th of September, mentioned digital assets as the start of its guidelines but didn’t specifically clarify its intentions in the document.

Japan seems to stay in line with its past approach of embracing innovation without placing undue burdens on the growth of technology in the financial sector.
The guidelines seem to indicate that the government is getting ready for cryptocurrency and how it should affect investors in the future. The document states, “it is anticipated that financial products that invest in crypto assets (virtual currency) will be formed in the future.”
But the document also talks about investor safety, financial system stabilization, and excessive speculation. Indeed, hubris, irrational exuberance, and other forms of negative behaviors keep regulators in Japan up at night.
Governmental representatives note, “but there are also indications that investment in crypto assets is encouraging speculation. The agency believes that it should carefully handle the formation and sale of investment trusts that invest in such assets.”
Regulatory bodies within the financial sector must make sure to minimize systemic risk within the financial services sector, lest they find themselves with financial bubbles and substantial issues. Japanese agencies seem to want to toe the line when it comes to risk minimization. They realize that pension funds, debts, and other short-term and long-term obligations can have a significant impact on the financial system if not treated correctly.
As such, the document focuses on the financial entities that provide the public with financial products such as trusts to take great caution when allocating value to assets that may be volatile, risky, and lacking in liquidity. Financial firms should pay close attention to how they create and sell these products to minimize potential hassles down the road.
Remember that the document does not explicitly talk about bitcoin or other digital assets. Further, it simply refers to digital assets and virtual currencies in the beginning before becoming more general as it progresses.
Further, this initiative is one that is still in the process of taking place and will be one that facilitates and takes into account public input. The country always promotes and processes new entrants into the cryptocurrency sector and still hosts many different notable entities within its jurisdiction.

Private Sector Events in Japan

The cryptocurrency private sector is composed of companies such as BitFlyer, BitBank, Fisco Virtual Currency, SBI Virtual Currencies, BitOcean, Zaif, GMO Coin, Bitarg Exchange, and the Xtheta corporation. According to different publications, more private sector companies hope to enter and grow in Japan. Demand was substantial in 2018 and continues to be a strong trend.

Further, we see that different private sector entities are popping up in the space in many regards. For instance, one new organization seeks to set further standards in the burgeoning security token sector.
Security token offerings have not taken off as of yet. Still, many prominent entities like Galaxy Digital, Medici Ventures, and other firms expect to see growth and organizations in Japan agree. One new institution seeks to take advantage of this emerging landscape of security token offerings (STO) as the Japanese government finalizes legislation on token offerings within its jurisdiction.
Sources note that brokerages such Monex, Nomura Securities, Daiwa Securities, and other firms have partnered to create the Japan STO Association.
The Japan STO Association seeks to create rules that will get ahead of the upcoming regulations and legislations within the sector by conducting self-regulation efforts. It will take over the value chain of implementation, lobbying, and the proliferation of security tokens within Japan.

The ZB Take

Technology races ahead, and regulators try to keep up. The worldwide web started to pick up substantial traction in the latter half of the 1990s. Now, about twenty years later, we’ve witnessed a wide variety of changes due to technology in our society today. The Internet and its infrastructure didn’t happen overnight, and it took several decades to pick up and be commercialized by the private sector.
The change and the value accrued to these early players have been quite rapid and extraordinary. Similarly, bitcoin came to the fore in 2009, but only received real recognition in 2017. We know that much has changed in some ways since then, but we’re still in the midst of further change.
Human capital and value have already started to shift toward these trust technologies. We’re sure to see further adoption and growth in this sector.
Regulatory events and private sector events in countries like Japan is just one example of this change.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open source their reports and analysis for the public.

Learn more about ZB Exchange by visiting www.zb.com

Daniel Rufini
ZB.com
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