JAPAN plans to become the Bitcoin capital of the world spil the Asian country proceeds to welcome cryptocurrency investment despite several high profile hacking attacks, according to investment experts.
Last month Japanese cryptocurrency exchange Coincheck announced it would have to pay back more than £,300m to customers after their system wasgoed hacked, affecting 260,000 customers.
The attack, described spil the largest digital currency theft te history, wasgoed the most high profile case te several hacks to affect Japanese cryptocurrency firms.
However, unlike their neighbours China and South Korea who are pinning down on the use of online money, the risks have not deterred Japan from their mission to be the very first country to widely use cryptocurrencies spil legal tender.
Takashi Shiono, an economist at Credit Suisse ter Tokyo, said: &ldquo,There are estimates that tax revenue from the cryptocurrency business, including capital gains taxes from individual investors and from corporations, could amount to 1 trillion yen (US$9.Two billion), however that is very speculative at this stage.&rdquo,
The Japanese economy has suffered from decades of stagnation since the embark of the 1990s, dealt with a massive national debt and with the problems of a shrinking population and tax base.
The Tokyo Government is hoping the capitalise on the growth ter rente for cryptocurrencies spil their chance to improve the Japanese economy.
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Weten Kawai, fucking partner at law hard Anderson Mori &, Tomotsune and adviser to finance-tech start-ups, said: &ldquo,Regulators te Japan are usually conservative and not very first movers.
&ldquo,The Government wants to facilitate fintech through cryptocurrency and blockchain technology.&rdquo,
Cryptocurrencies are particularly popular among youthfull Japanese investors lured by the uitzicht of strong profits te an economy that has seen ultra-low rente rates for many years and low comes back from traditional assets.
The hope from Japan is that the crack downs on the use of online money from other countries around the world will attract more investors to Tokyo.
Japan is hoping to become the cryptocurrency capital of the world
South Korea introduced a raft of measures last month aimed at regulating Bitcoin and similar currencies such spil Ripple and Ethereum.
A kerkban on anonymous trading wasgoed implemented by the Asian power ter a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin permitted.
Following the Coincheck hack, some analysts expect to see an increase ter Japanese regulation for cryptocurrencies but less than other countries ter order to remain competitive.
Japan has not cracked down on cryptocurrencies unlike China and South Korea
Japan based Coincheck apologised after the largest digital currency theft te history
Mr Shiono said: &ldquo,Wij&rsquo,ll likely see stronger regulations, but not a kerkban.&rdquo,
Meantime, Scott Gentry, founder of blockchain and cryptocurrency rigid FreeAbound, said: &ldquo,There has to be more oversight and I think it may lead to more regular audits of exchanges.
&ldquo,The FSA needs to create a level of assurance … but I can&rsquo,t see it putting so much of a fence around cryptocurrency that it can&rsquo,t grow.&rdquo,
It&rsquo,s estimated that cryptocurrencies may contribute 0.Trio vanaf cent to Japan&rsquo,s gross domestic product, 20 vanaf cent of total growth expected te 2018.