U.S. Might Take The Cue From Japan in Regard To Licensing Bitcoin and Cryptocurrency Exchanges

The government of U.S. might emulate Japan in relation to cryptocurrencies trading like bitcoin and Ethereum.

In the last week, the government of Japan and the FSA (Financial Services Agency) formally approved 11 cryptocurrency exchanges and licensed them, such as BitFlyer, the hugest trading platform in the state with more than 800,000 users.

BitFlyer’s CEO, Yuzo Kano issued a statement saying that the implementation of useful regulations for cryptocurrency exchanges as well as investors by the government of Japan would permit the state’s cryptocurrency market to place itself at the center of worldwide cryptocurency’s development, innovation and trading.

‘Japan has gone through immense demand for bitcoin trading and virtual currency services also. The FSA’s endorsement for bitFlyer to work as a Registered Virtual Currency Exchange and the flexibility and honesty of the regulation has made a timely appearance in the blockchain area,’ remarked Kano.

The governments decide not to take any action or form a Just Ecosystem for Exchanges

At the beginning of the current year at the Blockchain NZ conference which took place in Auckland, New Zealand, Andreas Antonopoulos, a professional in bitcoin and security said that government can let the cryptocurrency exchange sector remain the same or form an environment which is more just, clear and effective for businesses.

‘States can opt to either take no action, which is all right; worsen the situation for cryptocurrency trading, similar to the action taken by Australia when sales taxes were imposed on all transactions for cryptocurrency; alternatively, they can improve things for firms by controlling the banks and inspiring firms by forming an equal operating environment,’ remarked Antonopoulos. 

When the Japanese government sanctions and licenses cryptocurrency exchanges, it has formally accepted cryptocurrency exchanges as legalized financial service suppliers, authorizing firms within the state.

Now, in less than one week, the positive action from FSA in Japan in controlling cryptocurrency markets has led to a rise in bitcoin demand. Due to this, the everyday Japan trading quantity, the hugest bitcoin exchange market in the globe, has increased at a fast pace.

The increasing bitcoin demand can also be seen in the bitcoin cost trend, since the bitcoin cost exceeded the $4,470 level on 2 October (earlier today).

The Government of U.S. might emulate Japan in Licensing Exchanges

At a function presented by the Federal Reserve Bank of Philadelphia, Keith Noreika, acting Comptroller of the Currency, informed reporters that he is in agreement with the application of cryptocurrency exchanges for bank position.

In addition, Noreika stated he is thinking of implementing a national licensing program for cryptocurrency exchanges, eradicating regional licenses line BitLicense in New York and issuing a combined regulatory structure for cryptocurrency trading platforms as well as investors.

‘I would not object to individuals coming here and having discussions with the Office of the Comptroller of the Currency, regarding the usefulness of a charter to them. However, this is a lengthy procedure they would need to experience. Simply because you manage to go inside the door does not guarantee you will exit from the other side,’ stated Noreika.

It might take a lengthier time for the government of U.S. together with its economic regulators to provide equal cryptocurrency exchanges and bitcoin businesses licensing programs. 

However, it is a positive sign of bitcoin development which the U.S., the second hugest bitcoin exchange after Japan is cautiously thinking of forming a market which is stronger and effectively-regulated for investors and overall consumers.