Cryptocurrencies in Japan

The main articles are:

• Cryptocurrencies
• Economy of Japan

2023: For 6 years, hackers stole $721 million worth of cryptocurrency from Japanese users. This is 30% of the damage in the world

Hacker groups associated with North Korea have stolen cryptocurrency assets totaling approximately $721 million from Japanese users since 2017. Such data are given in a study by the British company Elliptic, the results of which were released on May 15, 2023. Read more here.

2022: 7.7 million people in Japan regularly transact in cryptocurrencies

The number of users regularly transacting in cryptocurrencies, data for December 2022

2021: State Cryptocurrency Plan

In Japan, a number of commercial firms are preparing, with the participation of the state, to create a single cryptocurrency DCJPY. The Central Bank of Japan promised to issue its own version of cryptocurrency. In India, it is planned not only to release state cryptocurrency, but to ban private crypto assets. This became known on November 26, 2021.

In Japan, a consortium of 70 organizations is being created - the Digital Currency Forum. It will include four private banks, telecommunications companies, railway operators and industrial giants (in particular, Mitsubishi). Japan's central bank, as well as the Financial Services Agency and three ministries, will have observer status.

The Forum's published bulletin indicates that its participants are creating a digital platform that will act as the main issuer of cryptocurrency and a means of exchanging ordinary financial assets for blockchain. This exchange is designated as the generation of a foreign exchange asset ("mining" - minting).

DCJPY holders will be able to transfer digital yen to other platform members or convert ("burn") it back into the standard currency in their bank account. However, initially direct conversion of DCJPY into regular money will be impossible.

The bulletin also states that DCJPY will eventually be issued by banks and considered as a form of deposit bonds - fortunately, this format is fully regulated by law. This, from the point of view of the authors of the initiative, will speed up the introduction of digital currency and ensure the stability of its exchange rate.

Three reasons are given for creating such a cryptocurrency. The first is to ensure interoperability between prepayment systems used by different companies; for example, Japan's largest railway operator, the East Japan Railway Company, produces prepaid cards that can also be used to buy goods at train stations, railway stations and some small retail outlets. Other companies have similar schemes, but they are not mutually compatible. Cryptocurrency will allow this to change and make issuers of various prepayment schemes also a kind of payment operators.

The second rationale is that issuing digital currencies by banks would not mean competing with deposits. The document also states that the digital currency will speed up settlements for commercial transactions and reduce the cost of processing cash.

A third rationale states that as a digital currency, DCJPY will become the most adequate mechanism for smart contract transactions or payments for digital assets such as the NFT.

DCJPY is scheduled to launch in 2022, although there is no exact date yet.

Japan's central bank was also going to issue its own cryptocurrency, and how it would relate to DCJPY remains to be seen.

In India, in turn, the government submitted a bill to parliament, according to which the circulation of only certain cryptocurrencies will be allowed; The Reserve Bank of India will issue its own centralized currency.

countries The central bank has previously expressed "deep concern" about the spread of cryptocurrencies out of concern that they could be used for money laundering and financing. terrorism

According to rough estimates, India now has 15-20 million crypto investors, and the total assets are approximately 400 billion rupees or $5.4 billion.

The Indian authorities considered banning the ownership, issuance, trading and transfer of cryptocurrencies, but the corresponding bill was never ripe.

For November 2021, according to, to data Reuters cryptocurrency trading is going to be imposed on large ones, and in the taxes future - to prohibit the circulation of most unofficial cryptocurrencies. Only a small set of crypto assets will remain, which will be used as a means of promoting the technology underlying^[1] are^[2] to^[3]

Notes