August 3rd, 2018
Bitcoin is a phenomenon, which is creating conflicting emotions among many around the world. With this new concept, many seem to be elated, excited, worried, and in doubt. Governments are facing a whole lot of pressure to regulate this new currency system. Western countries are “concerned” about the use of Bitcoin in illicit activities, making it difficult for them to be regulated. However, Japan is taking the reverse approach. Japanese cities are attracting digital currency miners with plentiful renewable energy, one best way of earning Bitcoin.
Bitcoin is now officially regulated in Japan as a payment method. Many online stores and businesses have started accepting the digital currency as a mode of payment. Japanese shoppers can now buy bitcoin in a variety of stores. There are electronic advertisements and signs displayed all around the country to help raise awareness among common users. Many Bitcoin ATM operators are coming up with installations around the city. Using bitcoin allows for an individual to pay all utility bills in few simple clicks.
After the MT Gox collapse, the country’s regulators intervened and came up with strict rules to prevent such collapse in near future. Rather banning the use of digital currency, they came up with regulation. This made digital currencies safe and secure. Exchanges now have to maintain capital reserves, implement KYC procedures and keep customer funds separate. When all western countries are hesitant to implement cryptocurrency regulation, Japan is proving to be different.
Threat or Opportunity
Japan is a tech-savvy nation which is known to promote innovation and the latest technology. They have no begun promote digital currencies as well. Elected officials of this country have a better appreciation for new technologies. With the recent regulation of digital currencies, Japan is teaching Western governments a Lesson to manage cryptocurrency. Blockchain technology is already creating buzz around the globe and is considered as one of the emerging technologies. This recent regulation shows that all digitally inclined countries should come forward and take initiative to regulate bitcoin and other digital currencies. This will help users buy bitcoin safely and efficiently.
Digital currency regulations mean different things in different countries. In the Land of Rising Sun, it means taking necessary measures to safeguard citizens, while encouraging them to use Bitcoin. The government is also encouraging many new businesses to accept Bitcoin as a mode of payment. This is an amazing opportunity, which has pointed other countries in a new direction. In other developed countries, Bitcoin regulation is more a euphemism for anti-money laundering.
Showing the World Direction
Following Japan’s take on digital currency, many nations have come forward, but nothing has taken place since then. Australia is now showing the intent to regulate bitcoin. It was sounding promising until an investigation made it clear that Australia is not yet ready to promote bitcoin or use bitcoin signs in shopping malls or retail stores just yet.
The country’s justice minister states that, it’s their responsibility to stop the movement of money to terrorists and criminals for the sake of national security. He also added that regulated businesses in Australia should abide by all rules of the present regime. On the other hand, Japan never shied away to weigh on digital currencies. Its new ICO guidelines and stringent KYC regulations show their commitment. This has certainly excited bitcoin enthusiasts, crypto pioneers, entrepreneurs, and exchange owners in this part of the world. Many are coming forward for business and believing that Western governments too will follow the same path someday.
Do you think western countries will regulate bitcoin or other digital currencies?