Japan Teaches Western Governments a Lesson in Cryptocurrency Regulation

[alyssa85]

https://news.bitcoin.com/japan-teaches-western-governments-lesson-cryptocurrency-regulation/

Bitcoin has been an officially legal payment method in Japan since April, when 4,500 stores began accepting the cryptocurrency, and leading financial newspaper, the Nikkei, tips that figure to increase five-Japan Teaches Western Governments a Lesson in Cryptocurrency Regulationfold by the end of the year. Japanese shoppers can spend bitcoin in a range of stores including electronics giant Bic Cam and bitcoin signs are displayed prominently, helping to raise awareness. BTMs – ATMs that exchange fiat for bitcoin – are scattered throughout the country, and there’s even the ability to pay utility bills complete with a special bitcoin discount via Remixpoint.

Following the Mt Gox collapse, in which the country’s (and indeed the world’s) largest bitcoin exchange liquidated, losing 850,000 bitcoins, Japanese regulators stepped in. Rather than try to stem the use of cryptocurrency, they enacted regulations which mandated exchanges to maintain capital reserves, keep customer funds separate, and implement KYC procedures. Meanwhile, many western governments have dithered over cryptocurrency regulation.

This week, Donald Trump’s treasury secretary issued his first public comments about bitcoin – and they weren’t exactly glowing. His primary concern was with ensuring that bitcoin couldn’t be used “for illicit activities”. He also invoked the usual canards that government officials are prone to uttering in the same breath, citing money laundering, terrorists, and the dark web. The only box the treasury secretary forgot to tick off was the one marked “child pornography”.

These accusations aren’t just limited to bitcoin of course. Cryptography as a whole is the bugbear of many western governments, with British and US leaders in particular expressing frustration that backdoors can’t be built into encrypted messaging platforms such as Whatsapp. Bitcoin is mercifully free from centralized attempts at meddling with code, but that hasn’t prevented governments from restricting entry and exit points from the fiat world. Officials haven’t lain the banhammer on bitcoin, but they’ve done little to support it.

Japan is a tech-savvy nation whose elected officials have a better appreciation of the Japan Teaches Western Governments a Lesson in Cryptocurrency Regulationtransformative power of emerging technologies than most. It follows that the more digitally-inclined countries should be among the first to embrace cryptocurrency. In Europe, Estonia, with its e-Residency digital passports, is another country that’s been positive towards cryptocurrency.

“Bitcoin regulation” can mean very different things in different countries. In Japan it means taking measures to safeguard citizens whilst encouraging the responsible use of bitcoin and enabling crypto companies to get on with business. In other developed nations, however, “bitcoin regulation” is a euphemism for “anti-money laundering”.

[fanbeila]

Definitely,western countries should learn a lesson from japan in regulating bitcoin.Japan has legalized bitcoin since april and no issues has been encountered till now.Its very disappointing to see that western countries have not followed japan.Even other asian countries too try to follow china regarding bitcoin and they don't follow bitcoin.Japan has helped for progress of bitcoin by legalizing it and it has added itself in to main stream of development in the crypto world.

[fiulpro]

Japan is just doing which was supposed to be done.

They went forward and legalized bitcoins and then at the end made necessary arrangements to ensure their smooth running.

Most countries go like this :-
Bitcoin legalized >bitcoins are causing issues>bitcoins banned.

This so for sure completely wrong.
Your parents don't throw you out of the house when you break a thing or two rather they will choose to make you understand.

The western government needs to learn that lesson from japan , the lesson about extracting benifits from something and at the same time making sure about curbing the ways it can be misused.

[Kprawn]

Japan in my opinion is the shopping paradise for Bitcoin tourists and I am glad their government opened their doors to Bitcoiners.

I think a lot of countries feels threatened by Bitcoin, especially the ones with a weak economy. I think it will be a mistake to push

Bitcoin to the side, because it creates loads of jobs and generate a lot of extra tax income for these governments. 

[Kingofbitcoin12345]

Japan on my observation not only teaches western country about cryptocurrency regulation but it totally slapped the face and say “you need to wake up its the new thing and its worth the attention”.. Even all the country’s in the world might feel the same as the bitcoin capital of the world will be Japan because of its adaptation to its kind.. If we now talked about bitcoin we can’t separate about Japanese contribution to it..

[greeklogos]

I suppose on current ASEAN summit Japan is sharing their success with crypto adoption and other countries can Ginsburg understand that they have nothing to afraid.

[Harlot]

Japan had successfully made Bitcoin a legal mode of payment in their country but the problem still lies on how by supporting and using Bitcoin will still attract a lot of attention for criminals as we know that Bitcoin's origins or is well known as the dark web's #1 mode of payment. This is the problem most of the countries are facing when they want to support and identify Bitcoin as a mode of payment as they only want to take care of their own citizens, they must find for making Bitcoin as a mode of payment without also motivating criminals to do bad.

[penig]

I'm unclear what lessons are supposed to be learnt here.  As far as I know in the two countries noted, UK and US, there is no regulations specific to bitcoin, only standard financial regulations.  Is the suggestion that there should be new bitcoin specific regulation to protect users and promote its use?  

[Cloud27]

In my opinion, Japan teaches the western government on how to deal with this new crypto currency innovation, by knowing that they cannot stop the future, but they know how to prepare for it. Japan cannot control everything, but they can adopt and embrace the new system of crypto currency.

[Abebittalk23]

Japan as a country has been on the cutting edge, if not bleeding edge, of new technological revolutions since the end of the second world war. It doesn't surprise me at all that Japan is leading the way in early government adoption of bitcoin, considering bitcoin is the leader of the pack when it comes to cryptocurrencies. Perhaps even more interesting is the mere fact that a top five world economy, ranked by gdp, adopting bitcoin will in all likelyhood push other economic powerhouse countries to do the same in the years to come. I believe Japan is just the tip of the iceberg, expect bitcoin to rise big if others follow suit.

[Irvinn]

In Japan, there is indeed a very good approach to the introduction of crypto currency in the country and its regulation. This approach provides responsible use of the crypto currency and the actual freedom of citizens in the purchase, storage, use and sale of crypto currency. At the same time, minimal restrictions on its use have been introduced. In the countries of the West, emphasis is placed on the restrictions with the slogans of combating the use of crypto currency for criminal purposes.

[Michaelsch]

I want to learn more about crypto and from my experience, I feel that conferences could be a good way to learn... I found this one https://blockshowasia.com/ and I'm thinking to go, but tickets are not so cheap, but I suppose it could worth it... what do you think guys? have you heard about it?

[Futureblnr]

I want to learn more about crypto and from my experience, I feel that conferences could be a good way to learn... I found this one https://blockshowasia.com/ and I'm thinking to go, but tickets are not so cheap, but I suppose it could worth it... what do you think guys? have you heard about it?

Wow! It's in Singapour! I'm going there soon! I think it's actually a good idea to go there and not that expensive as you may think... you can earn more after with all that knowledge

[Bloody Mary]

I want to learn more about crypto and from my experience, I feel that conferences could be a good way to learn... I found this one https://blockshowasia.com/ and I'm thinking to go, but tickets are not so cheap, but I suppose it could worth it... what do you think guys? have you heard about it?

I haven't heard about it! Sounds great, but tickets look like they are too expensive...

[Juggy777]

https://news.bitcoin.com/japan-teaches-western-governments-lesson-cryptocurrency-regulation/

Bitcoin has been an officially legal payment method in Japan since April, when 4,500 stores began accepting the cryptocurrency, and leading financial newspaper, the Nikkei, tips that figure to increase five-Japan Teaches Western Governments a Lesson in Cryptocurrency Regulationfold by the end of the year. Japanese shoppers can spend bitcoin in a range of stores including electronics giant Bic Cam and bitcoin signs are displayed prominently, helping to raise awareness. BTMs – ATMs that exchange fiat for bitcoin – are scattered throughout the country, and there’s even the ability to pay utility bills complete with a special bitcoin discount via Remixpoint.

Following the Mt Gox collapse, in which the country’s (and indeed the world’s) largest bitcoin exchange liquidated, losing 850,000 bitcoins, Japanese regulators stepped in. Rather than try to stem the use of cryptocurrency, they enacted regulations which mandated exchanges to maintain capital reserves, keep customer funds separate, and implement KYC procedures. Meanwhile, many western governments have dithered over cryptocurrency regulation.

This week, Donald Trump’s treasury secretary issued his first public comments about bitcoin – and they weren’t exactly glowing. His primary concern was with ensuring that bitcoin couldn’t be used “for illicit activities”. He also invoked the usual canards that government officials are prone to uttering in the same breath, citing money laundering, terrorists, and the dark web. The only box the treasury secretary forgot to tick off was the one marked “child pornography”.

These accusations aren’t just limited to bitcoin of course. Cryptography as a whole is the bugbear of many western governments, with British and US leaders in particular expressing frustration that backdoors can’t be built into encrypted messaging platforms such as Whatsapp. Bitcoin is mercifully free from centralized attempts at meddling with code, but that hasn’t prevented governments from restricting entry and exit points from the fiat world. Officials haven’t lain the banhammer on bitcoin, but they’ve done little to support it.

Japan is a tech-savvy nation whose elected officials have a better appreciation of the Japan Teaches Western Governments a Lesson in Cryptocurrency Regulationtransformative power of emerging technologies than most. It follows that the more digitally-inclined countries should be among the first to embrace cryptocurrency. In Europe, Estonia, with its e-Residency digital passports, is another country that’s been positive towards cryptocurrency.

“Bitcoin regulation” can mean very different things in different countries. In Japan it means taking measures to safeguard citizens whilst encouraging the responsible use of bitcoin and enabling crypto companies to get on with business. In other developed nations, however, “bitcoin regulation” is a euphemism for “anti-money laundering”.

Japan has always been a leader of change and they have always innovated and then the world follows, even when the world was debating on whether to implement it or ban it, Japan went ahead and got Bitcoin in the country and it's successfully implemented it, China who used to boss Bitcoin around, and Japan came in and stopped it influence, I am very much sure usa shall follow Japan model very soon.

[Fatoshi]

I personally wouldn't want to put too much trust in Japan. If you understand Japans history then you will know its essentially a vassal state of America. If America decides it doesn't want Bitcoin then Japan can easily be made to block it.

[Michaelsch]

I want to learn more about crypto and from my experience, I feel that conferences could be a good way to learn... I found this one https://blockshowasia.com/ and I'm thinking to go, but tickets are not so cheap, but I suppose it could worth it... what do you think guys? have you heard about it?

I haven't heard about it! Sounds great, but tickets look like they are too expensive...

You can save some money as I did with promo code VIP30.. I think you can use it too, it will be 30% discount, what is huge discount imo

[Michaelsch]

I want to learn more about crypto and from my experience, I feel that conferences could be a good way to learn... I found this one https://blockshowasia.com/ and I'm thinking to go, but tickets are not so cheap, but I suppose it could worth it... what do you think guys? have you heard about it?

Wow! It's in Singapour! I'm going there soon! I think it's actually a good idea to go there and not that expensive as you may think... you can earn more after with all that knowledge

I've pointed it already, but you can save some money with the promo code VIP30, it will be 30% discount.. not bad, right? 

[jseverson]

Lol Japan could teach Western Governments a hell of a lot more lessons than just cryptocurrency.

It's pretty crazy how Japan warmed up to Bitcoins though. Your typical country would have scrambled for a ban after the Mt. Gox scandal, but they showed grace under pressure and instead came up with a way to preserve their citizens' liberties of Bitcoin use.

No country can really say definitively that Bitcoin is directly related to crime at this point, because countries like Japan and Sweden are among the most lenient in its regulation of use, and they're also among the safest countries in the world.

[8270thNinja]

Lol Japan could teach Western Governments a hell of a lot more lessons than just cryptocurrency.

What do you mean on the first paragraph? Nani!? Lol but honestly that is correct, Japan could them a lot more not just in technology field but also on how to care for nature but that's just another and different story.

I would like how Japan handled the regulation they hired and appointed people who appreciates Bitcoin and not see Bitcoin as a medium for possible Terrorism and Crime Related Transactions.