Bitcoin has taken a step further as it earns official recognition in Japan. According to the Japan Times, the virtual currency has been the focus of a set of bills that will clear the way for integration into the banking industry, which will see it become real money.
The approval of these Japanese regulations will mean Bitcoin exchanges must observe established KYC/AML standards leading to a whole new set of money laundering opportunities. The topic of protecting the consumer from money laundering as a result of Bitcoin acceptance will also be dealt with this year.
The history of Bitcoin in Japan is a turbulent one. Mark Karpeles led Bitcoin exchange Mt. Gox from 2012 to 2013. Suspicions of fraud, among other things, began to surface and the exchange eventually folded in February of 2014. The fall of Mt. Gox had a significant effect on the value of Bitcoin and resulted in Japan’s negative opinions and association with Mt. Gox.
Coincheck is one of the newer exchanges responsible for reigniting the market with more than 1,000 merchants generating billions of Yen per month.
The new regulations come at a time when Japan’s economy is suffering and the government wants to ensure that it doesn’t miss out the potential employment and economic opportunities presented globally.
Coincheck and all other Bitcoin exchanges will soon be required to register with the Financial Services Agency. Bitcoin payments may be made digitally without currency conversion, which indicates that we may soon see this crypto currency become an accepted form of payments for banks and other companies.