Japanese Internet conglomerate GMO Internet announced the launch of its own bitcoin exchange called GMO-Z.com Coin.
After the adoption of the law on the recognition of bitcoins and digital currencies as the equivalent of money in March 2016 and the official classification of bitcoins as a method of payment in April of this year, Japan continues to strengthen its position in the world crypto currency market. At least 18 companies applied for a special license for the exchange of crypto-currencies in the first month after the adoption of the latest amendments to the law.
One of them is GMO Internet, a Japanese conglomerate offering a wide range of Internet services for individuals and companies, announcing the launch of its own bitcoin exchange, which will be held on May 24 this year. Exchange called GMO-Z.com Coin Co., Ltd. Was first announced by a Japanese company last year - then it was assumed that it would become a crypto currency purse. However, in light of the recently adopted law on crypto-currencies in Japan, GMO Internet decided to create a full-fledged exchange, which allows buying and selling bitcoins for Japanese yens.
New Exchange
Created in October 2016, the exchange GMO-Z.com, is scheduled to open on May 24. In this case, users can apply for account creation as early as May 9th. The exchange will offer two types of services "exchange of virtual crypto currency" and "digital currency trading", which will allow buying and selling bitcoins for Japanese yens. The exchange will also use the zero-commission model, which was the hallmark of Chinese exchanges before the intervention of the People's Bank of China in their activities.
The announcement of the creation of the exchange also refers to the security system, which is planned for implementation - it includes methods such as cold storage and multi-signature wallets. The exchange will also be insured against cyberattacks and theft by the insurance company Mitsui Sumitomo Kaika Kaisha Insurance Co., Ltd. The announcement also mentions future innovations planned for implementation - the development of new services and the addition of other crypto-currencies, including air.
Bitcoin in Japan
Adoption of the new law in Japan takes bitcoin to a new level in terms of trust - now its users can count on a certain level of work of exchanges, in accordance with the existing legislative framework. The adopted law also provides crypto currency with exemption from the consumption tax, which will undoubtedly accelerate their spreading in the country. This is already happening, as demonstrated by the growing volume of trading operations with Japanese yen, which now occupy the first place in the world market Bitcoin.
The requirements that need to be met by the exchanges for obtaining a license are quite strict. They include the provision of a three-year business plan, separate management of funds, compliance with requirements for client verification for reliability and anti-money laundering, frequent reports to authorities, external audits and reserve capital of not less than 10 million yen. However, this did not prevent 18 exchanges to apply for a license in the first month of the law. In particular, it did not stop GMO-Z.com Coin, which is going to be launched, having a reserve capital of 500 million yen.
In general, the introduction of a new law in Japan can be of great benefit to bitcoin inside the country. The GMO-Z Coin team noted this in a statement:
"In recent years, the use of crypto-currency has flourished in various areas, such as international transfers and the accumulation of funds - both individuals and companies. It is believed that the volume of the crypto-currency market will reach 1 trillion yen in the next few years.
In Japan, various provisions concerning the protection of users of crypto-currency, officially entered into force in April this year. A registration system has been created that will allow creating a reliable and competently operating system of crypto-exchange exchanges - this will help improve the performance of the market as a whole. Moreover, from July 2017, the consumption tax in case of operations with crypto-currencies will also be canceled - this will significantly increase the spread of digital currencies in the country. "