Japan, one of the supported nations for crypto-based businesses with vast user base once again coming up with the long-awaited year-long cryptocurrency exchange project Taotao which is 40% backed by Yahoo Japan’s YJFX. The updates came through a social media Twitter post of May 27th.
The crypto community is all set to experience the launch of Taotao which is formally approved by Japan’s Financial Services Agency (FSA), the country’s financial regulator who is responsible for tightly managing the domestic cryptocurrency margin trading enterprises to avoid Anti-Money Laundering (AML) activities in the country. The regulators now making processes to strictly check the anonymous transactions followed by the weak identity verification practices which would be inspected by the Financial Action Task Force (FATF).
In early March 2019, the Japanese Cabinet– the chief executive body of Japan approved amendments which have put forth by the FSA to intensify significant rules governing the operations of cryptocurrency margin lending enterprises in the nation which would go live by 2020.
Financial Services Agency (FSA) Proposes Low Margin Trading Amount
When the Financial Services Agency (FSA) presented a report by the end of 2018, the regulator received the approvals from the Japanese Cabinet authority to watch over the cryptocurrency enterprises. In the report, it is clearly mentioned for the cryptocurrency trading platforms to officially register with the Japanese government and to reduce the number of leverage traders amount which is used on their platforms. With this effort, now crypto margin trading institutions in Japan would only be able to offer limited leverage of four times the amount of traders’ deposits. In May 2018, reportedly, the FSA has also released a five-point regulatory framework according to which Japanese cryptocurrency exchanges required to increase the security of their platforms following the shocking hack of Coincheck in Jan 2018- a Bitcoin wallet and Japanese cryptocurrency exchange platform established in 2014,which caused over half a billion dollars loss, the largest hack in the history of the crypto-economy till date.
As per the information, to start with the new platform Taotaowould be initially operating Bitcoin (BTC) and Ether (ETH) as its base trading currencies. The firm also plans to offer crypto margin trading options in Bitcoin Cash (BCH), Litecoin (LTC), and Ripple (XRP), in addition to BTC and ETH.
Since April 2019, the cryptocurrency adoption rate is increasing in most of the countries including Japan, which is indeed, a big spot for doing businesses in the crypto space. The unexpected surge in the Bitcoin (BTC) price has already fuelled the old as well as the new investors with a high hope to earn more money without intermediaries. Allegedly, the existing local trading platforms are claiming to have a significant increase in the account openings and the resulting exchange volumes.
Bitcoin (BTC) price already started to surge and excepted to reach $10,000 if it crosses the estimated resistance of $9500 according to the cryptocurrency industry experts. The upcoming advancements in the crypto-focused businesses, the rising collaborations between multiple organizations to accept Bitcoin along with other cryptocurrencies in exchange of goods and services, and a rapid price growth of the digital assets definitely showing a sign of a major bull run and an escalating process to boost the adoption of digital assets which is a driving force for G12 nations to come with more positive regulations.