Following the exit of the Chinese cryptocurrency exchange market caused by the Chinese government’s imposition of a nationwide ban on cryptocurrency trading platforms, Japan and South Korea have evolved into major bitcoin exchange markets and industries.
According to various cryptocurrency market data providers including CryptoCompare, Japan has secured 56.25 percent of the global bitcoin exchange market share, processing more than twice as much bitcoin trades as the US market.
Over the past week, the trading volume of the Japanese cryptocurrency exchange market increased substantially following the authorization and licensing of 11 cryptocurrency trading platforms by the Japanese government and its financial regulator, the Financial Services Agency (FSA). Some of the world’s largest cryptocurrency trading platforms such as BitFlyer gained legal status, and received permission to operate as regulated financial service providers in Japan.
As CCN previously reported, it is highly likely that the Japanese government’s authorization of cryptocurrency trading platform would influence US financial regulators to take a similar approach. Already, Keith Noreika, the acting Comptroller of the Currency, revealed that the US Treasury is considering the possibility of authorizing cryptocurrency exchanges through the imposition of a national licensing program.
The South Korean government is also planning on legalizing bitcoin and creating a national licensing program for cryptocurrency trading platforms in the upcoming months. Upon the release of new regulatory frameworks on bitcoin and cryptocurrencies, institutional and retail investors in the two countries would likely drive the bitcoin price up in the mid-term, allowing the price of bitcoin to achieve new highs.