Bitcoin Ventures, New Investments Era & Fast Financial Sector Adaption
- Posted on Feb 22, 2017
Japan, more precisely, top Japanese banks have given the bitcoin cryptocurrency a fresh impetus by investing in the top Japanese bitcoin exchanges. The Bitcoin Exchange in Japan has over 50% of the world market share. They have a daily trading volume of $135 million and the new investments is likely to push this figure higher.
Change in the perspective of the common man for Bitcoin and Investments
There is as much speculation as there is excitement among the players in the blockchain sector over the fresh developments. On one hand, we see the establishment of a new and stable mechanism for the operation of the bitcoin cryptocurrency. On the other, there is the fear that excessive legislation might drive businesses, especially the banking sector away from investing in the bitcoins.
Government led initiative
The exceptional growth in the Japanese bitcoin exchange is due to several factors. These include the adoption of sound and practical regulatory measures by the Japanese government along with a decline in the Chinese market. In May, last year, the Japanese government announced legislation recognizing virtual currencies including Bitcoin as legitimate money.
The increase in the merchant adoption in the Japanese commercial sector led to many positive changes. For instance, bitFlyer the Bitcoin exchange received series C funding (this funding was led by SBI Investment) amounting to $27 million.
Enforcement of stricter rules
When one sees the strict attitude adopted by the banks, there is growing concern that the businesses will shy away from adopting the cryptocurrency for their business transactions. One can see this instance in the case of BitLicense based in New York that drove all business out the local business economy began to stagnate.
This seems to be on the cards as new rules require that they get a license from the Financial Service Agency, be ready to submit to periodic audits, and register with anti-money laundering authorities.
The argument for stricter rules is the same – Legitimacy will help create an ambient environment for the people and the businesses to operate. This step will help expand trade volumes, integrate more network services, and increase the investments.
Meantime, SBI, the finance giant is looking for setting up its own bitcoin exchange after investing in bitFlyer and Kraken.
The other big investors were GMO Internet who opened a new cryptocurrency wallet and Money Partners Group, the FX broker that invested in TechBureau.