The trading volumes of famous cryptocurrency in Japan are about to escalate this year, as Japan had passed a bill for the regulatory framework for virtual currencies exchange. Will we observe Japan Bitcoin trading spike this year?
August 18, AtozForex – As some analysts say, we can expect a spike in Bitcoin price coming from Japan in the near future. Moreover, market forecasts show a rise in the value amount of Bitcoin traded after the first half of 2016.
Japan Bitcoin trading will soar up to 2 trillion JPY
As the market research in July comes, BitFlyer states that its virtual currency exchange has the biggest Bitcoin trading volume in the first 6 months of this year across Japan. The Japanese Bitcoin Exchange says it made a 200,000 registered users progress in June. Additionally, BitFlyer claims that about 7.8 million Bitcoins was traded in the period from January to June.
As it was estimated by Seed Planning market research firm, Bitcoin’s yearly trading volume will go up to 2 trillion JPY this year. The official representative of the firm stated:
“We have noticed a trend where investors who previously traded foreign currencies on margin take up bitcoin trading.”
Additionally, Yuzo Kano, the CEO of BitFlyer said that he believes that the trading volume of Bitcoin has been growing very rapidly. He stated that he supports digital economy, but also understands the importance of the regulation.
Regulatory framework adds to Bitcoin recovery
The regulatory measures launch seems to have been helpful in the process of rebound from the Mt. Gox scandal, which has worsened the Bitcoin image in Japan. This May, Japan has established a regulation for Bitcoin and virtual currency exchanges by Financial Services Agency (FSA). The bill also empowers the agency to have the authority to conduct the on-site inspections and will demand the operators to comply with know-your-customer (KYC) practices.
A volume of about $4.25 billion (about 430 billion JPY) in Bitcoins was recorded traded in Japan in the period January-June. What is interesting, in July alone, more than 200 billion JPY in Bitcoins were traded.
There are signs that Bitcoin trading can increase as the regulation catches up with more users to provide more legitimacy for the public view. Japan is now the second largest Bitcoin market in the world after China, leaving United Stated behind. In the beginning of the year, one Bitcoin was trading at around 44,000 JPY, where now one Bitcoin is worth almost 60,000 JPY.
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