The US state may come behind the roadmap of Japan in regulating trading exercises around cryptocurrencies such as bitcoin and Ethereum.
The previous week, the Japanese executive and its economic regulator the Financial Services Agency (FSA) officially allowed and licensed 11 cryptocurrency exchanges including BitFlyer, the country’s biggest trading platform with over 800,000 users.
Yuzo Kano, the CEO at BitFlyer, expressed emphasized that the establishment of empirical statutes for cryptocurrency exchanges and investors by the Japanese state would allow the country’s cryptocurrency market to position itself at the geographical-point of global cryptocurrency trading, development, and innovation.
“Japan has been blowing up with demand for both bitcoin trading as well as virtual currency assistance. The FSA’s approval for bitFlyer to work as a Registered Virtual Currency Exchange, and the agency’s acceptance and forward-thinking regulation could not come at a better time for the blockchain space,” said Kano.
States Can Both Do Nothing or Create a Fair Ecosystem For Exchanges
In the beginning of this year, at the Blockchain NZ seminar held in Auckland, New Zealand, bitcoin, and security expert Andreas Antonopoulos explained that states can unless leave the cryptocurrency exchange sector as is or create a more transparent, equitable, and effective atmosphere for businesses.
“The States can decide to either do nothing – which is good; make things critical for cryptocurrency trading – like what Australia did by forcing sales taxes on all cryptocurrency transactions; or they can make things manageable for companies by reining in the banks and inspiring companies by producing a level playing field,” said Antonopoulos.
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give permission for and licensing cryptocurrency exchanges, the Japanese state has formally acknowledged cryptocurrency exchanges as regulated financial service providers, permitting the companies to fully function as legal financial organizations within the state. Already, within less than a week, the optimistic approach from Japan’s FSA in regulating cryptocurrency markets has triggered an improvement in demand for bitcoin and as a result, the periodic trading volume of Japan, the massive bitcoin exchange market in the world, has grown at a rapid rate. The increasing demand for bitcoin is also apparent in the price trend of bitcoin, as the bitcoin price exceeded the $4,470 mark earlier today, on October 2.
The US Government May Follow Japan in Licensing Exchanges
At an event hosted by the Federal Reserve Bank of Philadelphia, acting Comptroller("Comptroller and Auditor General") of the Currency Keith Noreika told correspondents that he is open toward cryptocurrency exchanges applying for bank status. Noreika also recorded that he is considering the forcing of a national licensing program for cryptocurrency exchanges, Removing regional licenses such as New York’s BitLicense and releasing a centralized regulatory framework for cryptocurrency trading programs and investors.
“I wouldn’t be unfavorable to those people coming in and talking to the [Office of the "Comptroller and Auditor General" of the Currency] about how a charter could make knowledge for them. But that is a lengthy process they’d have to go through, and just because you get in the opening doesn’t mean you’re going to get out the door on the other side,” said Noreika.
It could take a lengthy period for the US state and its financial regulators to offer consolidated licensing programs for cryptocurrency exchanges and bitcoin businesses. But, it is an optimistic sign of bitcoin growth that the US, the second biggest bitcoin exchange market after Japan, is precisely considering creating a more strong and well-regulated market for investors and worldwide consumers.
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