In 2020, the Japanese crypto industry seems to have entered its maturation phase. With new crypto laws established in May, large exchanges have solidified their leading positions, while crypto startups and unregulated businesses have exited the market. However, it seems that a winner has not yet been declared. There are already more than 25 registered exchanges in the small nation with a population of over 100 million, but global crypto giants are just starting to enter the market. Some believe a significant industry reorganization is coming through buyouts of licensed exchanges. And with the current bull market expected to continue, we may see a further expansion of crypto companies in Japan in 2021.
One question that must be asked, though, is: Does the industry actually have to show maturity now? With just 12 years having passed since Bitcoin was created, the entire crypto and blockchain industry is still in a nascent stage. Can we, therefore, foresee future development and regulate the industry at all? Regulatory clarity may be an advantage, but leaving it vague for now — whether done intentionally or not — as can be seen in the United States and China may be the right move for innovation.