The Financial Services Agency of Japan has given its approval for yet another digital coin exchange to operate in the country. The exchange will be based in Tokyo and becomes the 16th exchange approved by the FSA. According to the FSA website, BitOcean will only be trading in Bitcoin.
Who Are Bitocean?
Bitocean was established in 2013, and is based in China and Japan. Currently, the company is working on the development of two-way BTC ATMs and a Bitcoin trading platform. On its site, it states, “We are working on setting up a new Bitcoin trading platform in Tokyo, while at the same time contributing to Mt Gox’s liquidation/rehabilitation process.”
The FSA’s approval marked its third round of approvals. The first round was in September 2017. At this time, 11 exchanges received approval. The second approval took place at the start of December 2017 when 4 exchanges were given the go-ahead. Meanwhile, the second largest exchange in Japan, Coincheck, has not yet been approved. Its paperwork is still being reviewed, according to the agency.
Local Japanese Exchanges Are Spreading Their Wings
As new cryptocoin exchanges receive approval in Japan, those already in existence are expanding abroad. They are doing this in a bid to grow volumes and liquidity. With over 20 exchanges operating in Japan, there is just not enough business to go around for them. Most investors usually have to wait to complete transactions that involve seldom-traded currencies. Also, the value of these currencies tends to fluctuate when a big order is placed.
One of the biggest exchanges in Japan, Bitflyer, recently expanded operations into the US in November 2017. It also has plans to expand its operations into Europe. Others that are spreading abroad include Quoine, which will launch in the Philippines in 2018. Another one is Bitpoint, which has expanded into South Korea and is preparing to open offices in Taiwan in January.
Bitcoin Is Gaining Acceptance
As the number of exchanges has continued to grow, so do the number of merchants that will accept payment in Bitcoins. In fact, recent reports indicate that a leading automotive group of used cars is ready to accept select cryptocoins as payment.
Besides these big businesses, small merchants in Japan are accepting Bitcoin as well. For instance, the Tokyo Campervan Rental Center Group recently announced that it would accept Bitcoin as payment. Not only that, but those who pay in Bitcoin will receive a 20% discount between January 4th and March 31st 2018.
What are your thoughts on the growing number of approved digital coin exchanges in Japan? Leave us your thoughts in the comment section below.