Crypt currencies will become a fully-fledged and legal tender in Japan

The Japanese government issued a legal act that changes the status of Bit coin and other crypto currencies into legal and full payment means. Recognition of crypto currencies for the equivalent of other funds will come into force on 1 April this year.

In February, the Japanese Financial Market Authority (FSA) recognized requests for recognizing crypts as well as FIAT’s money. A positive decision meant that, according to the Bit coin Office, it fulfils the functions that are needed to recognize something for the currency. In March, the local government issued the final resolution.

In addition to amendments to the Payment Services Act, modifications were also made on the grounds of combating financial crimes: “Act on Prevention of Transfer of Criminal Proceeds” imposes on the Japanese exchanges the duty to tighten procedures aimed at customer verification.

The Know Your Client procedure tells stock exchanges, among others, to verify the identity of clients who open accounts, to keep a record of transactions or to notify appropriate institutions about suspicious transactions. Stock markets have already responded to new requirements

The introduction of such regulations places Japan in the position of one of the most important countries for Bit coin. It is already clear today that Japanese stock exchanges represent a large part of the volume. The previously mentioned Bit flyer is responsible for about 12% of the monthly turnover, which puts him in the second position just behind Bitfinex.