The Japanese Financial Services Agency (FSA) has been investigating a variety of cryptocurrency trading platforms to make sure they are following Japan’s digital currency regulatory policy. Just recently the FSA published a report stemming from their investigations that reveals a lot of statistics about how many cryptocurrency traders reside in Japan, and other types of demographic data.
3.5 Million Japanese Cryptocurrency Traders
The FSA has just published data collected from roughly seventeen domestic virtual currency exchanges after investigating these businesses for possible AML/KYC regulatory transgressions. According to the data collected from all of these exchanges, there are over 3.5 million Japanese cryptocurrency traders that use these platforms. The most popular cryptocurrencies in Japan include BTC, ETH, XRP, BCH, and LTC.
The data gathered by the FSA is an accumulation of research compiled from a few years ago all the way up until March 31, 2018. The study explains that a majority of traders are between their 20s-30s while older traders above 40 participate in markets that offer features like margin trading. In fact, lending and margin trading added up to roughly $543Bn while traditional trades gathered $97Bn in 2017.
While the Yen Dominates Cryptocurrency Trade Volumes Regulators Make Sure Guidelines Are Being Followed
Japan has gained a competitive edge as far as adopting bitcoin and allowing cryptocurrency exchanges to flourish. Over the past eight months, the Japanese yen has dominated BTC trade volumes against other nation state-issued currencies capturing between 40-60 percent of global trades. At the time of writing the yen accounts for 60.65 percent of global BTC trades over the past 24 hours. The FSA report details that over the past two years a “remarkable amount of funds has flowed into virtual currency transactions.”
Japanese regulators also reveal a few things they were looking for while investigating the cryptocurrency exchanges over the past few weeks. This entails checking security measures, an established security team, manuals on system risk and regulatory guidelines, digital signatures used by multiple administrators, multi-signature technology and making sure cold storage is being utilized.
“In addition to the above, some companies will conduct email reporting on transaction reports periodically (at the end of every month, every three months, etc.),” explains the FSA’s report. The news follows the Japanese government’s plans to revise the registration rules for domestic cryptocurrency exchanges.