The Japanese Bitcoin market has emerged stronger than ever following the Mt Gox incident. As the adoption of Bitcoin increases in the country, cryptocurrency exchanges in the region are attracting huge investments. The recent investment of $1.75 million in bitFlyer indicates the increasing interest among banking and financial institutions in Bitcoin and cryptocurrency technology.
BitFlyer, the leading Bitcoin exchange platform in Japan has received investments from Mizuho Financial Group and Sumitomo Mitsui Financial Group. With the latest round of investment, bitFlyer now has two more prominent names in the country’s financial ecosystem as its investors. Other investors in the platform so far include Tokyo-Mitsubishi UFJ Ltd., SBI Investment, MS&AD, Recruit Strategic Partners and Dai-chi Life Group.
The influx of funds into bitFlyer and the other cryptocurrency businesses in Japan during the recent days is said to be influenced by new Bitcoin regulations. Scheduled to come into effect in May 2017, the new regulations imparts Bitcoin with a status equivalent to that of a legal tender.
The legal status of Bitcoin and bitFlyer’s aim to create core systems for various industries using blockchain has encouraged the mainstream financial and banking firms to invest in it. According to reports, the technology developed by bitFlyer is already being tested by Sumitomo Mitsui Banking Corporation and Mizuho Financial Group. Also, the cryptocurrency platform is said to be working on its own blockchain called “Miyabi“.
The latest round of fundraising puts the total funds raised by bitFlyer at more than $36 million. It had earlier raised $28 million and $6.5 million in 2016 and 2015 respectively. The increasing interest in blockchain among global banking sector and the upcoming changes in rules governing the investing practices of Japanese banks are expected to drive the demand for stakes in cryptocurrency technology companies.
Japan has positioned itself among the top cryptocurrency markets. In the current scenario, the second half of 2017 may turn out to be excellent for the country’s Bitcoin industry.
Ref: Finance Magnates | Econotimes | Image: NewsBTC