China and South Korea do all possible to avoid cryptocurrency spreading, at least on their territory. Japan though, as it has been expected, is more advanced in this sense.
The Japanese Financial Service Agency approved 11 companies for cryptocurrency operating in the country. For now, operating cryptocurrencies is possible without licensing, though the representatives on the FSA insist that regulation would be an advantage for the industry, as it will help keeping the operations with cryptocurrency protected from fraud.
Though, for license obtaining, the companies shall comply with a set of rather strict requirements. First of all, segregation of accounts of their customers, second, creating a powerful and reliable computer system. Though, for Japan, those requirements are rather viable.
It is expected that the cryptocurrency regulation will strengthen the position of Japan as a new Cryptocurrency Hub, as well as strengthen the economy of the country.
From the other hand, regulation can be regarded as an effort to avoid one more Mt.Gox scandal. Tokyo bitcoin exchange was one of the biggest in the world till 480mln USD went missing, and the exchange founder was accused of data manipulation.
Nevertheless, Japan has a good chance to become a cryptocurrency hub provided the needed security measures are guaranteed.