Japan’s Financial Services Agency (FSA) is reporting that inquiries for cryptocurrency-related firms have dropped from Q1 to Q2. The decline indicates a slump in cryptocurrency trading in the country.
Japan is seeing a slump in cryptocurrency-related inquiries for the past few months, its regulatory agency is reporting. In Q1, around 574 enquiries were recorded while in Q2, this number dropped to 494. In contrast, the total number of inquiries relating to investment products in the country grew from 1,999 to 2,164 in the same period.
Japan Taking a Closer Look
Japan has often been seen as the leading nation when it comes to cryptocurrency-related licenses and approvals. However, given the number of high-profile hacks in the country, the FSA has been taking a sterner look at the blockchain industry.
The news comes at a time when Japan’s adoption for blockchain technology seems to nonetheless be increasing. The Bank of Japan, for one, is actively considering issuing its own central bank-issued cryptocurrency. Around 100 manufacturers in the country are also teaming up to leverage the technology for its supply chain logistics. Digital currencies are undoubtedly increasing in popularity in the country.
So, why the decline in inquiries to the FSA? At the surface, it seems likely that this is just a summer slump and not indicative of the greater market. However, Bitcoin’s choppy market movements and inability to stay definitively above the $10,000 price point has scared some investors. Japan is one of the leading trading hubs for Bitcoin and other major cryptocurrencies.
It seems difficult to assess how the future of blockchain-based businesses in Japan. It could be that we have reached a ‘plateau’ in cryptocurrency-related businesses and now comes the ‘hard work’ of making them solvent in the long-term.
We will have to wait until the Q3 numbers to more accurately assess the trends currently playing out in Japan.
Will Japan continue to be a leading hub for the cryptocurrency industry? Let us know your thoughts in the comments below.