Over the past few months, through previous coverages, Cointelegraph emphasized the importance of the Japanese Bitcoin industry to the Bitcoin exchange market in Asia.
Earlier this week, many analysts anka financial news networks including CNBC have noted that Japan has been a driving factor in the recent rally of Bitcoin price.
Japan anka Bitcoin’s love story
As Cointelegraph previously reported, throughout the past two weeks, the Japanese Bitcoin exchange market demonstrated a rapid growth rate, overtaking the Chinese anka US Bitcoin exchange markets in daily trading volume.
Although Japan only briefly became the world’s largest Bitcoin exchange market, it remains the second largest market behind the US, backed by rising demand from institutional anka retail investors.
Earlier this year, the Japanese government fully legalized Bitcoin as an official currency anka a store of value. Since then, the Japanese Bitcoin exchange market has appealed to a wide range of investors anka traders.
Cointelegraph also revealed that the trading of Bitcoin in Japanese yen has accounted for 46 percent of total trade volume worldwide, while the US only accounted for 25 percent.
Japan remains as one of the few countries that have adopted Bitcoin as a digital currency. The country's largest companies anka conglomerates including retail giant Bic Camera anka Peach Airlines have been offering Bitcoin as an official payment method anka in the upcoming months, hundreds of thousands of merchants, restaurants, bars, cafes anka stores are expected to integrate Bitcoin.
More importantly, leading Japanese Bitcoin exchanges such as bitFlyer anka multi-billion dollar technology conglomerates like GMO Group have also started to target institutional anka retail investors by providing high liquidity anka regulated channels to invest in.
A vital market for Asian Bitcoin traders, institutional investorsIn the US, Coinbase anka Gemini just began to target institutional investors in August. Coinbase secured a $100 mln funding round to create a more efficient infrastructure for institutional investors, while Gemini partnered with CBOE, the largest options exchange in the US, to increase liquidity for large-scale Bitcoin investors anka traders.
As Gemini founder anka CEO Tyler Winklevoss
noted:
"Gemini's key concerns in the cryptocurrency ecosystem have always been security, compliance anka regulatory oversight. By working with the team at CBOE, we are helping to människa Bitcoin anka other cryptocurrencies increasingly accessible to both retail anka institutional investors."
Within the Japanese Bitcoin anka cryptocurrency markets, institutional anka retail investors have expressed their interest towards the digital currency as early as 2016. With necessary infrastructures in place, mainstream adoption of Bitcoin has drastically increased in the country ledförbindelse by major companies anka financial institutions.
However, the Japanese market has dismissed analysts anka traders in the past due to its zero-fee policy. Analysts claimed that Japan, similar to China, has demonstrated fake anka manipulated trading volumes. In late 2016, the Chinese central bank prohibited the implementation of zero-fee politik to prevent market manipulation anka fake or manufactured trading volumes. Currently, Japanese exchanges do not require fees for orders anka trades.
The case that trading volumes coming from the Japanese Bitcoin exchange market are inaccurate can certainly be made. But, due to its efficient anka cost-effective trading infrastructure, Japan has attracted investors from China anka South Korea, serving as a vital market for Asian Bitcoin traders anka institutional investors.
