Cryptocurrency transactions over exchanges in Japan jumped 51% in the first 11 months of 2021 to 103 trillion yen ($900 billion), based on JVCEA data, putting it on pace to reach almost $1 trillion for all of 2021.
Much of the credit is owed to the country’s retail and gaming industries, which have pushed for the increased use of cryptocurrencies in markets.
There’s speculation that Japan’s massive crypto market might make it easier for future listings of new coins, which previously had to go through a lengthy screening process.
To understand the situation, it’s important to acknowledge the contributions of the retail and gaming industries, the two main driving markets behind the growth of crypto use in Japan.
Japanese retail investors are dominating Bitcoin trading for several reasons. According to reports, due to recent crackdowns in South Korea and China, Japan has been left with the lion’s share of crypto trading options.
Moreover, the country’s government has fully embraced the use of Bitcoin for payment of goods and services in a move to grow the FinTech industry. The increased use of cryptocurrencies has also paved the way for more exchanges to provide services in Japan.
According to Statista’s research report, the projections for 2020 showed a 13% increase in merchants and stores accepting payments in cryptocurrency from the previous year, with approximately 87.1 thousand such merchants in the country.
Friendly crypto regulations and merchant adoption have caused a boom in the retail industry’s increased use of cryptocurrencies.
Like the electronics giant Bic Camera, big retailers have been accepting Bitcoin payments for a couple of years now. Even big banks like Mizuho and SBI showed commitment to the sector back in 2019.
Several crypto casinos entered the Japanese market during the last year. Cloudbet, the world’s largest crypto casino, recently expanded its online casino and sportsbook platform to Japan.
The country’s casino experts expect them to be the first foreign operator to successfully compete with traditional anime themed casinos.
Casinos with crypto support are adored by the Japanese since they afford players faster payment speeds compared to other banking options. In fact, many casinos prefer payments in crypto and offer several benefits to clients, such as not charging fees and allowing large withdrawal transactions.
Japan’s gaming industry has a big hand in the success of the crypto market. Some of the major online casinos accept payments in several cryptocurrencies, such as:
● Bitcoin (BTC)
● Litecoin (LTC)
● Ripple (XRP)
● Tron (TRX)
● Dogecoin (DOGE)
● Tether (USDT)
● Ethereum (ETH)
● Bitcoin Cash (BCH)
Cloudbet is the world’s largest crypto casino and supports the payment of 29 different coins, including Cardano and BNB. BNB support is a good move, especially since it’s a good alternative to the expensive Ethereum.
Countless benefits have allowed for easier integration of crypto services in Japan’s gaming industry.
For starters, payment in cryptocurrencies affords players “high anonymity” since little to no personal information is disclosed during transactions. Therefore, it’s a highly safe and secure option for players looking to mitigate cybersecurity risks.
Similarly, cryptocurrency payments are a great option for tax saving measures. While casino profits are taxed under the temporary income classification, payments in crypto cannot be taxed as they are converted to virtual currency.
Moreover, it’s a good option for players worried about their online identity and security. Identity and data theft are important risks to consider when choosing an online casino because of cybersecurity risks, which are constantly increasing.
Casinos have a safeguard measure, KYC verification, to prevent illegal activities. However, it can become the casino’s Achilles heel in a malware attack situation, compromising sensitive client information.
Cryptocurrency offers a way to bypass this since you can use it to deposit and withdraw money without verifying your identity.
Although it’s important to mention it’s still a slippery slope, crypto can be misused by parties wanting to facilitate illegal activities. However, it’s a good measure for players looking for extra precautionary measures to prevent cybersecurity threats.
As Japan’s Financial Services Agency pushes for fewer restrictions for new listings on exchanges, the country’s trillion dollar crypto market is expected to grow even more. Japan has established itself as one of the biggest players in the crypto trading market.