Japan has recently been praised for leading the way in bitcoin regulation, with strict rules imposed by the Financial Services Authority (FSA). The country currently boasts some of the most clear regulations relating to the use and trade of bitcoin, placing them ahead of many western countries.

The country is often said to be the \'home’\'of bitcoin, but it is also a country that has had a challenging relationship with cryptocurrency in the past. In 2014, an estimated $437m (around $9bn by today’s values) was lost with the unexpected closing of the Shibuya-based Mt. Gox exchange. At the time, Mt. Gox was reported to be handling around 70% of all global bitcoin transactions.

However, it was this instance that sparked the creation of clear FSA exchange regulations, resulting in what is now commonly referred to as the \'Virtual Currency Act’\' Under the act, cryptocurrency is clearly defined and heavily regulated, aiding adoption rates. Additionally, Japanese exchanges are eligible to apply for cryptocurrency licenses, offering increased protection and peace of mind for investors.

One of the first exchanges in Japan to obtain a licence was Bitflyer; an exchange using the Miyabi blockchain which has now expanded to cover cryptocurrency trading in the United States.