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Adoption takes reigns in Japan, replaces US in terms of monthly volumes

Posted on January 23, 2017 | by [email protected]

Bitcoin markets change significantly over time, which creates an intriguing paradigm shift. China remains the largest market for Bitcoin trading in terms of volume with a whopping 96% domination. It is followed by the USD market which held this place firmly for a good period of time. Over the past few days, there has been a significant growth in the Japanese market, catapulting it to the second place in terms of volume. After the Mt. Gox debacle, the Bitcoin scenario in Japan has recovered cautiously from that point. Let dive deep into the dynamics to know how exactly Japan took volumes away from USA:

Drop of sales tax and efforts of exchanges:

The Japanese Government has dropped the sales tax on the purchase of Bitcoin and Cryptocurrencies in October. Initially a sales tax of 8% was levied on purchase of any cryptocurrency. While this move is attracting traders, it is also influencing the merchants across Japan for better adoption. Major exchanges in Japan like BitFlyer, Coincheck and Zaif have all launched campaigns that would attract the masses. BitFlyer launched a sophisticated trading platform for professional traders and an illustrated Blockchain explorer that have gone famous. Zaif bitcoin exchange launched an investment service that has been gaining lot of attention. The investment service is dollar cost averaging investment service, shielding users from bad investments.

Increasing merchant adoption:

Right from their launch, BitFlyer and Coincheck have pushed for merchant adoption by promoting Bitcoin transactions across merchants. So as to make Bitcoin a part of daily life, Coincheck has enabled payment of utility bills through Bitcoin. They have a dedicated ‘Coincheck Electricity’ platform that makes this possible. Having bitcoin payment available for something like a utility bill, that has a reliable image, has definitely put bitcoin in positive light. These efforts have surely paid off as Japan now has around 5,270 merchants and websites accepting Bitcoin. BitFlyer has even initiated talks with the Japanese Government for transacting in Bitcoin for Government operated websites and payments.

How does the future look like?

The given rise in volumes should not be treated as a momentary surge but rather as fruits of steady adoption. With Chinese exchanges looking to impose transaction costs on BTC-Yuan trading pair, BTC-Yen looks to be the better alternative. With no service tax, traders would find it lucrative to trade across Japanese exchanges. Especially automated traders that provide volumes to the market would look to cut down on cost through Japan. If not a complete Chinese volumes, at least a part of it would be redirected to Japan restoring its previous glory prior to Mt. Gox debacle.

Is Japan all set to reclaim its status in the world of crypto?

Posted on October 25, 2016 | by [email protected]

Mt.Gox is singularly regarded as the worst event to happen to Bitcoin development throughout the digital currency’s course. This has resulted in the onset of a bearish trend in the bitcoin markets for over a year. Ever since Bitcoin has taken good time to recover solely on the basis of widespread adoption and Venture capital backing. The Bitcoin eco-system in Japan has recovered cautiously from that point and now has improved tremendously. Let’s look into how Japan slowly recovered from the debacle:

Launch of new and diverse Exchanges:

Initially, bitFlyer, the exchange which succeeded Mt Gox in Japan, managed to raise $4 million in first round of funding. After that many exchanges were launched to recapture the vacuum created by Mt. Gox. BitOcean, Kraken and ANX are few initial examples of exchanges that have been thriving on Japanese Bitcoin markets. These exchanges were implementing strategies that would lead to better adoption of the currency in Japan. This way they envisaged to capitalize on the open market left by Mt. Gox that at one time accounted to 70 % of Bitcoin transactions in the world.

Currently Coincheck and Zaif are gaining major traction due to their various initiatives that are reaching to the Bitcoin demographic.

Lucrative platforms that attract customers:

As a means of increase adoption and attract customers, exchanges have been providing convenient platforms for trading. bitFlyer launched ‘chainFlyer’ a block explorer that provides illustrated environment to explore the ledger. It also launched ‘bitFlyer Lightning’ a professional trading platform targeting professional traders and a good chunk of market share.

On similar lines Zaif bitcoin exchange launched an investment service that has been gaining lot of attention. The investment service is dollar cost averaging investment service. This is particularly lucrative because you can protect yourself from the risk of investing money at the wrong time. By following a consistent pattern of adding new money to your investment at right time, risk will be averted.

Increasing merchant adoption and Regulation backing:

Owing to great publicity, over 48,000 merchants accept Bitcoin in Japan. So as to make Bitcoin a part of daily life, Coincheck has enabled payment of utility bills through Bitcoin. They have a dedicated ‘Coincheck Electricity’ platform that makes this possible. Having bitcoin payment available for something like a utility bill, that has a reliable image, will definitely put bitcoin in positive light.

Even the Regulation has been positive for the cryptocurrency. Recently the 8 % sales tax on Bitcoin has been abolished, showing how willing the authorities are in aiding the currency’s growth.

After Germany, Japan can now pay utility bills through Bitcoin

Posted on September 26, 2016 | by [email protected]

Marching into the last week of September, the Bitcoin prices have taken an uptick reaching over to $600 level again. Achieving this for the second time in the month, the currency managed to bounce back after a downward breakout threat. The prices have held up significantly around $595 with heavy technical support coming in at the price. More good news is underway as bitcoin adoption has seen a new development in Asian regions. Let’s look how Japan can now pay utility bills through Bitcoin:

Coincheck launches “Coincheck Denki”:

After Germany, Japan now has the facility to pay their utility bills through Bitcoin. Coincheck, Japanese Bitcoin services firm, has introduced a service “Coincheck Denki” allowing users to pay utility bills through bitcoin. To promote the services, Coincheck is offering 4%-6% rebates for the heavy users. Even the light users can save on their bills through miscellaneous schemes available on their wallet. The amount saved would be available in their linked Coincheck bitcoin wallet.

The service, which is the first of its kind in Japan, will be accessible from the start of November. Coincheck Denki E-net Systems has partnership with Marubeni Power Retail Corporation, which operates plants in 17 locations in central Japan. The company also has electrical business experience in over 22 other countries. The wide presence of Marubeni Power Retail Corporation would hopefully help better adoption of Bitcoin and the Coincheck Denki services.

Cryptocurrency Exchange Poloneix suspends New Hampshire accounts:

image_1474652780_11926519 — Credits: COINTELEGRAPH

According to a note posted on the Exchange’s website, Poloneix has suspended New Hampshire accounts due to state’s cryptocurrency regulations. The customers have been notified to close orders and withdraw funds by 6th of October. Under the 2016 law, a nonrefundable application fee of $500 is required for each license application. Within 30 days from the start of money transmission activity a fee of $25 will be paid to the department for each authorized delegate registration. This adds up to a total maximum annual fee of $5,000 for all locations.

Each money transmitter applicant must post a continuous surety bond in the amount of $100,000. The surety bond is for the benefit of any person who faces damages by any violation of this chapter. Poloneix has assured that the suspension is temporary and they are working out a way to renew their business.

Ripple and Big banks launch First Interbank Blockchain Group:

Blockchain startup Ripple has revealed details of the new interbank group that will create the first blockchain payment. Ripple has revealed that banks are getting closer toward uniform policies and governance for the transfer of money over blockchain. The Global Payments Steering Group (GPSG) sees six founding members that will be working over this intiative.

Marcus Treacher, Ripple’s newly hired global head of strategic accounts said:

“The messaging today across borders is Swift. The de facto way everyone moves money through countries is Swift. That’s what we think we can do better with Ripple.”

Bank of America, Santander and the Royal Bank of Canada are the latest to join the team of founding members. It previously had UniCredit and Standard Chartered; and Australian banking institution Westpac Banking Corp.