Japan is fairly secretive about their financial data and this is the first time we are hearing about how their crypto trading sector: and the results are positive! Japan’s Financial Services Agency (known as Japan’s financial watchdog) recently released a report, in Japanese, which was then translated to English by the ever-helpful CoinDesk. The data that the FSA presented has been taken from 3 years ago all the way up the last day of March this year. So it is in fact, the most recent data we have from the Japenese Cryptocurrency scene.
Now that we have (and can understand the numbers), let’s have a look at them! The data in the report showed that as many as 3.5million people were trading crypto on up to 17 Japanese exchanges. This really shows that Japan is truly becoming a major crypto hub. The stats showed that the majority of people trading are relatively young – coming in at 85% of traders being between the ages of 20 and 40, which comes as no surprise as the crypto industry is known for attracting millennial investors. The stats showed that investors over 40 preferred to trade using margin trading and the likes.
The report also revealed the massive popularity of Bitcoin in Japan as it recorded a massive increase of 340% in trade over the past 3 years. But even with that being said, like other places in the world Bitcoin has fallen a bit this year during the Cryptocurrency slump. Although Bitcoin is the most popular, Japanese investors are not shy to trade in other Cryptocurrencies and popular coins in Japan also include ETH, XRP, and LTC.
Although Tokyo and Japan in general, are a known hub of positive Cryptocurrency activity- they have definitely not been without their share of hardships. The biggest of which was most probably the massive hack of CoinCheck- a Tokyo-based Cryptocurrency exchange platform. They lost 58 billion Yen worth of Cryptocurrency in the hack and it was quite a blow for the Japanese Cryptocurrency industry.
The Yen is a massive mover and shaker when it comes to buying crypto, with a massive 60percent of all crypto purchases being bought in Yen. And Japan is also known to be quite strict when it comes to laws and regulations – perhaps that may be the keen to their overall crypto success. There are high-tech security systems in place that ensure there are fraudsters or schemers in the Japanese midst. Security levels definitely jumped up a few notches after the unfortunate crypto hacks. Last month they even ordered Binance to stop operating due to them operating without a license. Binance was originally the country’s biggest exchange platform so their dismissal was quite the burn. But it just shows that Japan won’t take any digressions. Better safe than sorry.There are rumors that they have moved their offices to Malta.
The future truly looks bright for Japan as they lead the world into a regulated and informed Cryptocurrency market.