Crypto In Japan Is On The Rise Despite Regulation
By the end of march there has been a reported 3.5 million Japanese people which 84% of those are between the ages of 20 and 40 currently trading crypto. They are utilizing 17 domestic exchanges. Amongst the millennials there has been a recent surge of crypto trading. The latest report comes from the Financial Services Agency.
This year bitcoin’s trading volume has skyrocketed 340% over three years. Going from 22 million in march 2014 to 97 billion in March 2017. You may have noticed that bitcoin has undergone a massive correction this year due to regulatory oversight around the world.
We have seena 65% decline from all-time highs reached in December after BTC traded right around the $20,000 mark. The highly volatile market for BTC has seen returns over 500% which is unheard of for trading. For example, the S&P 500 saw a 12.7% return over the same period.
The FSA states that Japan is one of the biggest countries trading currently. Japan was recently under major scrutiny after Coincheck was hacked. They suffered a loss of 588 million dollars back in January. How can a company recover from something like that? Well, they can’t hence why they filed bankruptcy.
Japan also last month came out trying to get the world’s largest exchange to halt trading without a license. Binance which was found in Hong Kong in 2017 is now opening an office in Malta and jumping ship to avoid regulation issues.
So what is the moral of the story? Simple, Crypto is huge in Japan and the latest crypto run late last year caused a panic. It caused FOMO and many people rushing into the market. They were hoping to get in on a big run. Many investors getting in were thinking it was too late and boy were they wrong. Things after the peak crashed and hard. Remember the market is Volatile. Happy Trading!