Japan Creates BitLicense 2.0 As Bitcoin Becomes a Legal Currency

Japan Creates BitLicense 2.0 As Bitcoin Becomes a Legal Currency

pan Creates BitLicense 2.0 As Bitcoin Becomes a Legal Currency

​​BitConnect was among the very first websites online to break the story of Japan legalizing Bitcoin as a national currency last Spring. It was one of our most-read, probably our most-read, articles to date, and for good reason. It was one of the Top 25 stories of last year on Reddit, with tens of thousands of views and shares. Now, it is time for Bitcoin to go legally live in Japan, and the details are coming out on its regulatory limits. Less than good news to report, people.

How BitLicense 2.0 Works

I guess we should start with the regulatory standard, or substandard, for Bitcoin governance which is New York’s BitLicense, started in 2014, revised in 2015, and I have railed about it since Day One. Keeping it short and sweet, if BitLicense’s goal was to keep Bitcoin businesses out of new York state, it was crafted masterfully. After over two years of the books, only three corporations, none of them a small company by any means, have obtained a license.

Circle, Ripple, and Coinbase just got one, two years later. Many critics see BitLicense as purely a way to protect the incumbent legacy banking industry from competition from digital currency industry, and that is how this is playing out. It is several hundreds of thousands of dollars to have the compliance, insurance, and legal strength to fulfill all their requirements. It can be $100k just to apply, after all, costs are considered, according to Bitstamp. This makes it so onerous that mid-size companies like ShapeShift, BitStamp, and LocalBitcoins to not do business in New York at all. Maybe that was the point of BitLicense?

Forgive Japan if they are more than a little gunshy about the world of digital currency, but they do have a right to be skittish. Mt. Gox devolved into the biggest Bitcoin scam in history, happening right in the center of Tokyo, and currently, there are pyramid schemes in the name of falsified digital coins that have cost Japanese investors at least $20 Million worth of Yen, recently. The lowly scammers are doing an excellent job of ruining a great thing for the rest of us. In 2017, the Bitcoin community will have to pay for the mistakes of the few.

Last year, the finer details on how bitcoin and its related businesses would be related were not made public, as they were not hashed out at that time, so all we had was the broad strokes of the legal agreement. Now, with the help of a blog post from Koji Higashi, the Co-Founder of IndieSquare, who is much closer to the situation providing the nations detailed plans, the adoption looks less like an adoption nd more like a sentence, at least if you intend to do any level of Bitcoin business, not so much the investment side

“Contrary to the popular narratives so far,” says Higashi, “I personally have serious doubt about this law being a long term positive for the Japanese community and it may even set a bad precedent for other areas of the world similar to how people in the community were worried about the Bitlicense.”

Credit and Source:-https://bitconnect.co/bitcoin-news/434/japan-creates-bitlicense-and-becomes-a-legal-currency/