Bitcoin exchange licences in Japan receive 18 applications
Eighteen companies have applied for a licence to operate a cryptocurrency exchange in Japan since the government introduced the licensing scheme last month. The scheme requires companies to demonstrate compliance with financial and anti-fraud procedures. Companies that applied for the licence include existing exchange bitFlyer, as well as 10 market entrants. Japan has benefited from China's heavy regulation of bitcoin exchanges, with the country holding around 40% of bitcoin trading volumes. In January, Japan's bitcoin transaction volume stood at JPY541.1bn ($4.8bn), 20 times more than the same time last year. Recent legislation has cleared the way for merchants to accept bitcoin.

Eighteen companies are applying for the new license required to operate a cryptocurrency exchange in Japan.

The licensing scheme, which Japan introduced in April, aims to ensure exchanges operate in full compliance with financial regulation and anti-fraud procedures.

As a result of the applications, some of which come from extant Japanese exchanges such as bitFlyer, ten new players are slated to debut on the market to meet a forecast surge in demand.

These include SBI Holdings’ SBI Virtual Currencies, GMO Internet, Kabu.com Securities and Money Partners Group, Nikkei reports on Tuesday.

“We didn't even have minimum guidelines… so users will now feel more secure," a representative from SBI told the publication.

Japan is witnessing something of a Bitcoin renaissance in 2017. A giant uptick in trading quickly combined with a cementing of regulatory perspective see business deals come thick and fast.

Despite day-to-day Bitcoin use remaining low, plans in the pipeline for increasing acceptance alone suggest that underlying confidence in future spending habits is unwavering.

Since the shake-up of the Chinese exchange market in January, Japan now holds around 40 percent of Bitcoin trading volumes.

At the same time, news last week that its ten-year yields had declined to zero percent for the first time since 2007 stoked speculation investors may continue to seek alternatives in future.