For the second time in as many months, the Japanese yen is now higher in trading against Bitcoin Core (BTC) than the U.S. dollar. Coinhills data reveals that the yen has taken the top spot in trading, with 446,948.14 BTC traded against the currency in the past 24 hours, compared to just 413,240.65 traded against the dollar.
The yen now accounts for 49.12% of the trading, while the dollar only cover 45.41% (as of this writing). The rest of the trading, 5.47%, is seen through the Korean won (1.68%), the euro (1.54%), the British pound (0.66%) and a spattering of other currencies.
Trading between the yen and BTC has seen an increase in popularity over the past couple of months. Last November, the yen only covered 21% of BTC trading before suddenly skyrocketing in December.
One of the major reasons for the change could be due to the increase in regulations coming out of Asia. Specifically in Japan, one of the country’s largest crypto exchanges, Coincheck, registered with Japan’s Financial Services Authority (FSA) a few weeks ago. This provided a significant amount of investor confidence to the exchange, despite it having suffered a massive hack last January.
Just a week ago, Blockstream entered into a collaborative effort with Tokyo Tanshi and Digital Garage to create Crypto Garage, which is preparing to launch SETTLENET. SETTLENET is a suite of products based on the Liquid Network that is designed to enhance trading efficiency and security. One of the first products to be introduced to the platform will be a stablecoin pegged to the yen.
Last October, the Japanese Virtual Currency Exchange Association (JVCEA), a group comprised of crypto exchanges that was created to self-govern the industry, was given authorization by the FSA to legally regulate the space. That move led to the JVCEA regulating crypto activity, as well as the introduction of new exchanges.
On the other hand, the U.S. has been more reluctant to push forward with regulations for the crypto industry, which has caused concern among crypto enthusiasts. Multiple attempts at helping digital currencies receive mainstream support in the U.S. have often been futile and, while there has been some movement, even U.S. lawmakers have asserted that the country is poised to fall behind in FinTech innovation.
The steady increase of the Japanese yen over the dollar in crypto trading seems to support that opinion.
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