Home Cryptocurrency Japanese Assembly Members Seek to Make Tokyo a ‘Cryptocurrency Trading Center’

Japanese Assembly Members Seek to Make Tokyo a ‘Cryptocurrency Trading Center’

by Serge Shlykov

In a move that would make Tokyo the world’s largest cryptocurrency trading center, a group of 17 Japanese lawmakers wrote a letter to the head of the Japanese Financial Services Agency (FSA), Yuzo Kano, asking for cryptocurrency legislation. This letter, dated last week, was signed by 17 lawmakers from the Liberal Democratic Party, the largest political party in Japan. According to an infographic provided by the letter’s authors, the FSA has been “reluctant” to create legislation that would allow digital currency to flourish in Japan. The authors of the letter “hope that the FSA will allow virtual currencies to spread and develop in a healthy market.”

Cryptocurrency is a relatively new and largely unregulated market that allows the purchase and trade of virtual goods. The market has exploded in popularity in the past year, and there is no sign of it slowing down. Naturally, as with any new and exciting industry, there are those who seek to take advantage of these new investment opportunities and a new way of financial freedom. In Japan, a group of lawmakers has submitted a proposal to the country’s Financial Services Agency to introduce new laws that will make it easier to invest in cryptocurrency, and provide some security for those who do. “The government should create a healthy environment for cryptocurrency trading, by establishing cybersecurity standards and proper transactions rules.”

Japan is becoming increasingly interesting for the crypto-currency industry, and one politician in the capital wants to reinforce this trend. A Tokyo city council member wants to turn the Japanese capital into a commercial center for cryptocurrencies.

Blockchain as a growth strategy to create an industrial cluster

Yuu Ito, the concerned deputy for the third term, commented on the possibility of strengthening the city’s financial sector by increasing its commitment to digital assets.

The announcement comes as he recently expressed support for the economic plans announced by Tokyo Governor Yuriko Koike. Mr Ito also highlighted the challenges Tokyo faces in competing with other major financial centres such as London, Macau and Hong Kong. He believes that the high tax rates on bitcoin (BTC) have discouraged investors and companies from operating in Japan, and that sweeping measures are needed to develop the sector domestically.

Nobuko Irie, a member of the Tokyo Metropolitan Assembly, said:

The country prints bonds to finance the deficit through the krona. In Tokyo, we also need to create new financial resources by introducing technology that can generate wealth, such as blockchain, as a growth strategy.

Ensuring a sound fiscal environment for Bitcoin

She praised the rapid growth of bitcoin use around the world, but expressed concern about how policymakers are approaching the issue. Here, she powerfully lays out the steps needed to make Tokyo a trading center for cryptocurrencies:

Policymakers must now consider the monetary and fiscal aspects of bitcoin. If you do this in the countryside, you lose the sense of speed, so create a special zone in Tokyo that you can use without paying taxes in the city. I think the job of politicians is to identify the problems and address them systematically during the campaign.

Iriye also pointed to the coronavirus as an opportunity to accelerate the adoption of policy adjustments while creating a healthy environment for the development of a cryptocurrency exchange in Tokyo :

If we want to get the economy going again, we need to create a mechanism to ensure that the money does not go unused. Virtual currency and blockchain can be used for this purpose. From what I learned this time, I think I need to get faster.

What do you think of the plans proposed by the Tokyo delegates? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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