Japan Leads the Way in Compliant Crypto Payments

A report published today by independent financial news outlet FinanceFeeds reveals that Japan is a leading global provider of compliant cryptocurrency payment services.

Report Japan a Global Leader in Compliant Crypto Payments

Tim Hakki Last updated: February 28, 2024 12:38 EST | 1 min read

> Japan is a global leader in compliant crypto payment services, according to a report published today by independent finance news outlet FinanceFeeds.

Japanese Web3 payments app, Slash, announced that it has facilitated over $10,000,000 in transactions between 3,000 merchants. Slash is a compliant payments app that adheres to Japan’s stringent requirements for crypto service providers. The app only permits crypto-to-crypto swaps, not crypto-to-fiat, so people primarily use stablecoins for their purchases.

Through this approach, Slash bypasses Japan’s prohibitive taxation policy of 55% on “miscellaneous income,” which is currently the legal category used to regulate cryptocurrencies in the country.

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But it doesn’t stop there. Slash has even more ambitious plans for the near future. Later this year, it will launch a credit card linked to its app users’ digital wallets, further facilitating large-scale compliant adoption of crypto throughout Japan.

Japan: Where Bitcoin is Accepted Everywhere

Many of Japan’s top retailers, including the department store chain Marui, leading electronics retailer Yamada Denki, and e-commerce giant Mercari, accept Bitcoin as a form of payment. Even Mercari’s flea market app supports Bitcoin transactions.

Japan’s Positive Stance Towards Crypto

Japanese lawmakers have overall welcomed cryptocurrencies as an important part of fintech development. Both the central bank and the Financial Services Agency have provided clear guidance to businesses using blockchain elements like stablecoins and DAOs.

The country has heavily regulated stablecoins, allowing only banks, trust companies, and money transmission services to issue them. All reserves backing stablecoins must be held in Japanese trust and invested solely in domestic bank accounts.

Earlier this month, the city of Kochi signed a deal to virtualize the city on the Japanese Start Land metaverse application, with hopes of receiving its first online tourists later this summer.

An official release from the Ministry of Economy in the middle of the month hinted that there may be an upcoming rule change in the country that will allow venture capital firms to hold crypto, which is crucial for investing in the industry.

Just last week, Japanese financial mega firms Mitsubishi UFJ, Rakuten, and Mizuho announced their plans to launch a tokenized bond, allowing investors to receive interest payments in crypto.

In a recent announcement, USDC issuer Circle revealed its partnership with domestic exchange Coincheck to secure the stablecoin’s first listing in Japan.

Q&A

Q: What are the benefits of using stablecoins for payments?

Using stablecoins for payments provides stability and eliminates the volatility associated with other cryptocurrencies like Bitcoin. It ensures that merchants and consumers can transact without worrying about significant price fluctuations.

Q: Are there any risks or concerns associated with compliant crypto payments in Japan?

While Japan has established clear regulations for crypto service providers, it is essential to remain vigilant against potential security risks, such as hacking or fraudulent activities. It is crucial to choose reputable platforms and store digital assets securely.

Q: How can the integration of crypto payments benefit merchants?

By accepting cryptocurrency payments, merchants can tap into a global customer base and enhance their payment options. Crypto payments often offer faster settlement times and lower transaction fees compared to traditional payment methods.

Q: What impact can Japan’s positive stance towards cryptocurrencies have on the global market?

Japan’s acceptance and regulation of cryptocurrencies can serve as a model for other countries looking to embrace the potential of blockchain technology. It may also encourage further innovation in the industry and attract international investors and businesses.

Future Outlook

Japan’s leadership in compliant crypto payments highlights its dedication to embracing the future of finance. As the country continues to create a supportive regulatory environment, we can expect to see increased adoption of cryptocurrencies and blockchain-based solutions in various industries. This trend opens up exciting opportunities for businesses, investors, and individuals alike.

🔮 Stay tuned for more updates and analysis on Japan’s crypto landscape!

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Reference List:

• Cyber Magazines – Billionaire Tim Draper Didn’t Expect US Government to Be Paranoid About Bitcoin
• FinanceFeeds – Report on Japan’s Global Leadership in Crypto Payment Services
• Ministry of Economy Official Release
• Circle Announcement
• Google News – Follow Us

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