Bitcoin Will Be Recognized As Currency By Japan
Finally, the time has arrived when the bitcoin will gain the recognition as a mainstream currency. The implementation of a new law in Japan follows the privilege that gives bitcoin a legal status as a payment option across the country. From 1 April 2017, this much-awaited law went into effect in Japan.
The bitcoin exchanges come under more regulatory scrutiny after the implementation of the new law. The identification of cryptocurrency as a legal currency will also lead the applicability of regulations that governs the banks and financial institutions for these types of platforms.
They will be needed to deal with the strict requires of the anti-money laundering and Know Your Customers along with many other things such as annual audits, cyber security needs and much more to guarantee the protection of consumers.
It is a great news for the global cryptocurrency ecosystem that the bitcoin got the legal payment recognition. It will attract more people towards the digital currency that will in return increase demand and rate.
However, as per the recent reports, the cryptocurrency platforms are still looking to find out the ways of achieving compliance with the new regulations in this industry. The needs of the exchanges were considered by the Accounting Standards Board of Japan who has announced that they have started their work in creating an accounting framework for the businesses as well as users to deal with the cryptocurrencies.
It will take some time for people and companies to get fully used to with the accounting practices that have raised the issues related to the legal implications of the wrong filings because of the lack of information and understanding.
In the next three years, the new developments are expected to increase the use of cryptocurrency to more than $9 billion. It is nearly five times as compared to the usage of $1.7 billion worth of cryptocurrencies that were in circulation in 2015.