Japan gives lesson of regulation of crypto-coins to Western governments
The Bitcoin is a phenomenon that causes conflicting emotions in people such as fear, excitement and doubt . Already for the rulers in charge of regulating each new product, market or service that appears, bitcoin comes up with a question. How to regulate something that is apparently insoluble? While many Western countries take on grotesque attitudes by pushing the "Fear" button, Japan goes the other way.
Bitcoin has been officially legal payment method in Japan since April, when 4,500 stores started accepting the crypto-currency, and the country's top financial newspaper, the Nikkei , suggests that this number is 5 times larger by the end of the year.
The Japanese can spend Bitcoin in a variety of stores, including the electronics giant, such as Bic Camera . In the midst of so much news, the news about bitcoin is displayed on a constant basis, helping to raise public awareness. ATMs that exchange common cash for bitcoins known as BTMs are scattered all over the country, and it is even possible to pay bills at a special discount for forms of payment using cryptomoeda.
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However, after the collapse of Mt Gox, the country's largest (and also the world's) bitcoin exchange , which was allegedly hacked, losing 850,000 bitcoins, Japanese regulators kicked in. Instead of trying to stop the use of crypto-coins, they issued regulations that required swaps to maintain capital reserves, keeping customer funds separate, and also implemented * KYC procedures . Meanwhile, many Western governments "hunt" the crypto-coins through strict regulations.
This week, Treasury Secretary Donald Trump issued his first public comment about bitcoin - and he was not exactly enthusiastic - his main concern was to ensure that bitcoin could not be used "for illicit activities." He also invoked the usual sayings that government officials are likely to utter, citing money laundering, terrorism, and the deep-web.
These charges are not limited to bitcoin, of course. The encryption as a whole are an enclosure full of darkness for many Western governments, mainly led by the British and Americans, expressing frustration when their will can not be obeyed by encrypted messaging applications like Whatsapp. Bitcoin is mercifully free from the attempted intrusion of its code, but this does not prevent governments from restricting their entry and exit points from the fiat world.
The Japan is a technological nation , whose employees have a better appreciation of the transformative power of emerging technologies than most. It is well known that the most digitally inclined countries should be among the first to adopt crypto-coins. In Europe, Estonia, with its digital passports, e-Residency , is another country that has been very positive about digital currencies.
"The regulation of Bitcoin can mean very different things in different countries. In Japan, it means taking steps to protect citizens, encouraging the responsible use of bitcoin, and allowing crypto-coins to carry on business. In other developed nations, however, "regulation" is a euphemism for "anti-money laundering."