
The cryptocurrency market in Japan is growing rapidly as more people purchase digital coins and exchanges prepare for more lenient regulations. Japanese investors held a record ¥5 trillion ($33.16 billion) in crypto as of July.
Exchanges are also offering new services, forming partnerships, and expanding trading nationwide to attract more people to invest.
Many people in Japan are seeking new ways to grow their money, as the cost of goods and services is rising faster than their wages, and both savings accounts and government bonds yield very low returns.
Residents continue to see stories of rapid growth with cryptocurrencies, so investors now want to take on more risk for better returns in a shorter timeframe.
However, the crypto market in Japan still has considerable room to grow, as there are approximately three times more people with securities accounts than those with crypto accounts.
Coincheck executive Satoshi Hasuo said this gap presents a “big opportunity” because the market could grow rapidly if even a small number of these stock investors decide to adopt cryptocurrency.
Big companies, such as global liquidity provider GSR, have also been discussing with Japanese exchanges how users can trade cryptocurrencies without significant price fluctuations, ensuring people feel secure when buying and selling these tokens.
Japan’s Financial Services Agency aims to make it easier and more attractive for users to trade cryptocurrencies, so it is considering lowering taxes to encourage new investors. The agency also aims to increase the borrowing limits for traders to attract experienced investors seeking greater flexibility. These rules won’t take effect until 2026 or 2027, as Japan’s parliament still needs to debate them, but people are already excited to hear such plans mentioned.
Exchanges and financial firms have already begun preparing to welcome new users when these rules take effect. Coincheck has partnered with one of Japan’s largest online marketplace platforms, Mercari.
The exchange will add crypto trading features to the platform to help people who may not have considered investing before but feel more comfortable when the service is part of a familiar and trusted app. The partnership has already increased the number of new crypto accounts in the country and helped introduce digital assets to people who may not have been willing to download specialized trading apps or learn complex trading tools.
SBI VC Trade (part of the large financial group SBI Holdings) also plans to increase borrowing limits from the current ratio of two times to possibly five or even ten times.
They also aim to offer lending services for the USDC stablecoin, enabling users to earn a profit without selling their assets. Furthermore, they are exploring the idea of creating crypto ETFs to help new investors who prefer familiar financial products enter the cryptocurrency market.
Japan’s financial regulator also plans to allow banks and bank-owned companies to offer crypto trading services directly. Because many people trust banks to hold their savings, they will feel safer trying digital assets through these institutions.
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