The bitcoin market causes a furor in Japan

 In  December, about 31% of global bitcoin purchases were made in yen,  behind the dollar (44%) but ahead of the South Korean won (18%) and the  euro (6%), according to jpbitcoin.com, which compiles the data of the sector.

I invest all my savings in bitcoin "says Mai Fujimoto, nicknamed" Miss  Bitcoin "in social networks, which like many Japanese now uses the most  popular cryptocurrency, also recognized as a means of legal payment in  the country.

The share of Japanese investors in this market has increased since  the prohibition last year of exchanges of cryptocurrencies in China.

Japan did the opposite and a law that came into force in early 2017  recognized the bitcoin and other virtual currencies as legal means of  payment, although it reinforced the demands of transparency and  financial strength to the local market operators.

This favorable regulation prompted Japanese computer groups to launch  in this new sector, while thousands of businesses in the country began  accepting payments in bitcoin, often to advertise in the local media.

"The  participation of large companies, the feeling of security generated by  the government's green light and the media exposure have led completely  new people to this market" of bitcoin in Japan, says Koji Higashi, 29, a  specialist in the sector, and he himself investor in this virtual currency.

Mai  Fujimoto, 32, has been a great supporter since 2012. "At the time I was  looking to create an online donation platform for the education of  children in developing countries (...) I realized to what extent It was expensive to send money abroad, "he told AFP.

"When I learned that it was no longer necessary to go through banks if  I used bitcoin payments, I was really impressed," he adds.

"I have invested all my savings in the bitcoin and in other  cryptocurrencies for a year (...). I no longer have savings in the  bank," he says.

Nothing, however, augured such success of the bitcoin among the  Japanese, known for their extreme prudence, their predilection for  savings and cash payments.

The  first attempts of the bitcoin to prevail in Japan were frustrated in  2014 with the spectacular bankruptcy in Tokyo of the MtGox exchange  platform. His former manager, the French Mark Karpelès, is being tried since  last year in Tokyo for manipulating data and diverting funds,  accusations that he rejects.

"Many  Japanese are very conservative about the risk, but we have a retail  business in the foreign exchange market, and many individuals negotiate  high sums in this market," said Yuzo Kano, executive chairman of  bitFlyer, today's main bitcoin business platform. Japan.

In addition, many Japanese speculators resort to cryptocurrencies such  as bitcoin, according to a recent note by Deutsche Bank analysts.

Prolonged low interest rates in the country - the result of a very  expansive monetary policy of the Japanese central bank - encourages  seeking better-paid alternative investments, says Kano, a former  employee of Goldman Sachs and BNP Paribas.

This option is not rational, and obeys to an effect of contagion, thinks nonetheless Koji Higashi. "Everybody does it, and I've heard that you earn a lot of money, so I do it too," he explains to sum up this state of mind.

But this furor could be appeased by the fact that any profit obtained  in these markets will be subject to a very high taxation rate of 55%.

"Many  investors do not know the amount that will be taxed," says Hugashi, who  predicts "many scandals of tax evasion in the near future. 

Sources: Coindesk,CNN

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