Following the Chinese governments decision to suspend all cryptocurrency trading after the ICO ban, Japan has become the largest Bitcoin exchange market in the world.
Presently the Japanese crypto exchange market has over 50% of the global market share and analysts are citing the China ban as the major reason.
Last week news coming out of China revealed that the financial regulatory authorities requested Chinese cryptocurrency exchanges to suspend trading and shut down by the end of the month.
The People’s Bank of China had also issued a statement saying:
“From the date of release of this Notice, any so-called platform that provide trading and exchange services for coin offering shall not engage in exchange businesses between legal tender and token or “virtual currency”; or engage in proprietary trading activities or trading as a central counterparty of tokens or “virtual currencies”; or provide pricing services or act as information intermediary for tokens or “virtual currencies.”
The suspension affected even the largest exchanges in the country – OKCoin and Huobi, both of which were consequently given an extended deadline.
While the news initiated a major slump in Bitcoin prices, it recovered soon after and is currently seeing a positive trend, reaching for $4,000.
Prior to the Chinese ban on exchanges, United States was in the lead as the world’s largest crypto trading market. Now, with China losing majority of its market share, many believe the Bitcoin price support levels are indicative of a more mature market.
Charlie Lee, creator of Litecoin and a vocal advocate of the crypto revolution, believes that the recent developments are ‘good’ and show that China cannot manipulate the market anymore.
“This is a good thing. China can no longer play with the markets by banning Bitcoin. Cryptocurrency cannot be killed by any country. One solution to centralized exchanges is decentralized ones. I hear the Decred Project team has something cooking that helps with that.”
According to the Chinese government, the recent moves to ban ICOs and suspend Bitcoin exchanges are to protect investors and create a regulatory framework for the booming crypto market.
While there are opposing views to implementing regulations for cryptocurrencies, many also believe that these developments can lead to a more stable market in the long run and increased investor trust.