It is always good to see more cryptocurrency exchanges open their doors. In Japan, that process is not as simple as it seems. Every exchange needs explicit approval and a license from the Japanese Financial Services Agency. So far, several companies successfully received their license already. Four new exchanges have now undergone the same process and are officially legal.
In Japan, Bitcoin and other cryptocurrencies operate on a very different level. The currency is legal tender and merchants like what Bitcoin has to offer. The rest of the world is well behind the curve in this regard, which isn’t exactly surprising. Moreover, the country is home to many different cryptocurrency exchanges. Four new platforms have now received their license to operate legally in the country. This brings the total to 5 approved trading platforms, with more to follow.
It is good to see so many approved exchanges. Although they mainly operate within Japan, some may seek to expand. bitFlyer is one of the licensed companies targeting the US market in the near future. It would be good to see some companies come to Europe. So far, Europe has lacked a competitive cryptocurrency trading platform ecosystem. Bitstamp only supports four currencies and Kraken’s infrastructure is too horrendous to work with.
For the Japanese exchanges, things will get a lot more interesting. Now that a few new platforms are licensed, there is more market competition. For Bitcoin enthusiasts, this should result in lower trading fees and different deposit and withdrawal methods. How all of this will play out, will become more clear in the following months. Three of the four companies will trade Bitcoin only, whereas one will also focus on select altcoins.
Moreover, the Japanese FSA is reviewing, even more, exchange applications as we speak. Around a dozen companies are in the process of getting their license as we speak. It is evident things will get a lot more competitive in the very near future. An open and transparent legislative framework allows for massive cryptocurrency growth in the country. We can only hope to see other countries take a similar approach in the future. Right now, that seems highly unlikely, though.