As Japan embraces a future in cryptocurrencies, it is developing policies and guidelines for stablecoins, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs) to accompany its already established regulations that have protected FTX Japan and its investors from major losses.
While many countries remain cautious about cryptocurrencies, Japan is embracing the future of Web3! Despite some challenges along the way, such as Coinbase and Kraken having to pull out of the Japanese market, Binance has found a way to thrive in Japan, even despite previous disagreements with authorities. And, the exciting news doesn’t stop there! Stablecoins, which once faced restrictions on Japanese exchanges, now have a whole new world of opportunities to explore!
Japan’s Approach to Cryptocurrency Security in the Wake of FTX Fiasco
In the wake of the FTX fiasco that blindsided global markets, many countries voiced their apprehension toward cryptocurrencies. Japan was distinct in its approach following incidents like the Mt.Gox hack and Coincheck event by mandating client assets to be separated from exchange assets, with most units held in cold wallets for utmost security. The fall of FTX further revealed how critical these measures were as it emerged unscathed from a similar situation untouched.
Before the FTX debacle, an algorithmic stablecoin called terraUSD (UST) had already collapsed in May. This has caused growing concern regarding the stability of stablecoins which are vital for cryptocurrency trading. Although various regulatory policies concerning the use of these coins have been proposed or are currently being considered – such as The European Union’s Markets in Crypto Assets (MiCA) Regulation – there is still a need for more consistent regulation worldwide. Japan could help lead this effort by conducting thorough research into their potential applications and implications.
Japan Has Its Strengths
Japan boasts one of the world’s most remarkable, high-quality intellectual properties (IP). Their animations and games have phenomenal international success and are expected to dominate global NFT markets and Web3 economies.
Japanese content is often disregarded and undervalued. This can be due to deflation or because it remains in possession of its holders. Still, NFTs offer a path to making that content digital while also allowing more people access – resulting in the potential growth of this valuable asset.
Japan is rapidly emerging as a leader in the DAO space, with its digital ministry even creating its own autonomous entity. Web3‘s Project Team sees immense potential for countries to use these entities to address social issues, reviving local communities and ultimately improving the Japanese economy. In addition, such advances create an environment that legitimizes and accelerates the adoption of cryptocurrencies, firstly in Japan, before spreading worldwide.
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