Japan’s thriving cryptocurrency space has just grown bigger.
Starting with a mere $23.35 million when the first cryptocurrency exchange opened shop in 2014, Japan’s digital currency market ballooned to $97 billion in 2017, the first ever crypto data set from market regulator Financial Services Agency (FSA) showed.
The agency also noted that Bitcoin’s credit, margins, and futures trading jumped from $2 million to a staggering $543 billion during the same period.
The FSA released its report to provide a real picture of the digital currency “fever” which hit Japan in recent months following the exponential growth of the virtual currency space over the past year. The report is also aimed at giving wider transparency about the space, the FSA said.
Japan boasts 3.5 million crypto investors
Figures gathered by the FSA from 17 virtual currency exchanges in Japan showed an estimated 3.5 million individuals trading in cryptocurrencies as of March 31 this year.
However, the agency noted the numbers could be significantly higher as at least 32 cryptocurrency exchanges are operating in the country.
Demographically, the majority of Japanese crypto investors are individuals in their 30s, who comprise of 34% of the total. Investors in their 20s or their 40s account for 28% and 22%, respectively.
Japan legalizes Bitcoin
The decision by China to ban cryptocurrency trading is being credited for the growth in Japan's digital assets space. In April last year, Japan passed legislation legalizing cryptocurrencies such as Bitcoin.
Today, the country accounts for 58% of global investments in Bitcoin, followed by the US as a distant second with about 22.2% of Bitcoin trading volume.
Crackdown on crypto fraud
Last week, the FSA ordered the suspension of cryptocurrency exchange operators Eternal Link and FSHO for two months, starting from April 6 and April 8, 2018, respectively. The companies were penalized for failing to take appropriate measures to protect customer data and provide sufficient security.
The suspension follows the massive hacker attack against Tokyo-based Coincheck early this year and the loss of more than $500 million worth of NEM tokens.
In addition, the agency issued an improvement order to Last Roots, demanding that the digital currency exchange take the necessary steps to protect its data from possible cyber attacks.
This article appeared first on Cryptovest
