This debut release from the Japanese Financial Services Agency (FSA) shares insights about virtual currency transactions. By the end of March 2018, analysis from 17 varied Japanese exchanges indicated that there were at least 3.5 million individuals in Japan engaged in cryptocurrency trading.
The release coincided with the inaugural digital currency exchange meeting held by the FSA in early March 2018. It highlights increased regulatory scrutiny aimed at boosting transparency in the digital currency sector. This comes amidst the backdrop of the Coincheck incident, which saw investors lose nearly $500 million, and follows a previous theft in 2017, amounting to about $6 million. Every trader included in these figures is involved with cryptocurrencies as investment assets.
Japanese Traders in Their 30s Lead the Pack
Digging deeper into these statistics reveals that 28% of digital currency traders fall in their 20s. In contrast, those in their 30s are the largest group, making up 34%. Meanwhile, Japanese traders in their 40s represent 22%.
For the FSA, documenting and analyzing such data marks a preliminary step toward tackling internal issues related to crypto exchanges. Japan has been a sanctuary for many following China's blanket ban on digital currencies. However, the nation continues to refine its legislation concerning digital assets.
While taking a moderate stance, Japan's regulators are increasingly worried about the risks tied to exchange hacks and money laundering. Alongside this focus, the latest data underscores the FSA's efforts to shape digital currency protocols, emphasizing the necessity of establishing clear regulations for digital coins. at the recent G20 Summit.
The FSA further revealed that as of March 2018's end, there were approximately 142,842 participants in Japan's crypto margins and futures market.
Japanese Trading Volume Shifts Toward Futures
A key observation from the statistics is the rising variance in engagement between Bitcoin itself and other trading options. Yearly trading figures show a clear Japanese preference for margins and futures over straightforward Bitcoin transactions. Bitcoin futures trading Between March 31, 2014, and 2017, Bitcoin trading volumes surged from $22 million to a whopping $97 billion. However, this remarkable growth pales in comparison to the staggering rise within the margins, credit, and futures markets for Bitcoin—soaring from $2 million in 2014 to $543 billion in 2017 alone.
Priyeshu Garg, a software engineer at a notable tech unicorn, delves into blockchain topics and trades in cryptocurrencies when not solving complex tech challenges.
