Cryptocurrencies have changed the way we perceive money in the recent years, allowing for decentralized and anonymous banking. Since their inception, cryptos have spread like wildfire and while they are used worldwide today, Asia may be the one place where they are truly thriving.
Unlike some of the western countries who are still deciding the fate of cryptos, many Asian countries have already regulated and allowed crypto use in day to day lives. Japan is one of the most progressive countries in that sense and with gambling using Bitcoin is on the rise in Japan, other industries and countries are following in Japan’s footsteps.
With Asian governments discovering the importance of cryptocurrencies for the economy early, we can expect them to lead the way for the progress of these new digital forms of money. Unlike their western counterparts, many Asian countries have already adopted bills that deal with cryptos in particular.
Japan the Most Liberal
Japan was the one Asian country that decided cryptocurrencies should be allowed to thrive. In April 2017, the country legalized crypto payments and transactions under the Payment Services Act. Since then, the country’s crypto regulator, Financial Services Agency, licensed 19 crypto exchanges, with well over 100 still waiting for their license.
Japan’s FSA has been actively included in international discussions on crypto policies and along with the Bank of Japan and Ministry of Finance, it has been leading the way for innovation in policy making in this area.
China Holding Back
The other major player in the Asian financial markets, China is not as open to cryptocurrency and blockchain as Japan. While China was in fact one of the hotbeds of early crypto development, the country introduced some fairly strict regulations and laws that saw the progress of cryptos within it slow down significantly.
China instituted five different regulators for crypto money and in 2017 it banned all crypto exchanges completely. This means that no one can set up a legal crypto exchange in China, which in turn means the market cannot really exist.
With China’s central bank and other financial institutions clearly worried about how cryptocurrencies could influence the economy in the wrong way, it is no wonder that such harsh measures are being instituted. Nevertheless, it is clear that residents of Asian countries will continue to find ways to keep cryptos alive and with the anonymity and privacy associated with such transactions, it is unlikely that Chinese laws will do much to stop their progress.