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Japan’s Active Crypto Trading Population Expected to Hit 500,000 in 2024

Japan

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

July 8, 2024

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Japan’s crypto use will stay among the highest in the world, with the number of people trading crypto daily rising from 350,000 to around 500,000 by the end of this year, according to a Bitget study.

This places Japan’s market size between those of Turkey and Indonesia. It’s also about two-thirds the size of South Korea’s market. This strong adoption in Japan can be attributed to the government’s forward-thinking regulations that encouraged the industry’s growth.

New regulations focused on compliance, along with the launch of cryptocurrency ETFs in the US, are expected to boost Japan’s crypto market. This means more involvement from both big institutional and retail investors.

“Japan with its high awareness for crypto is a dynamic and rapidly evolving landscape,” said Gracy Chen, CEO of Bitget. She added that exciting possibilities and current trends in Japan make it a prime area for new technologies and widespread use.

Japan’s Crypto Market Prioritizes Established Coins

According to the study, Japanese users are expected to continue their strong interest in local blockchain projects, especially games. They are also expected to increase their involvement with NFTs and blockchain task platforms.

It is expected that one or two blockchain game projects in Japan will secure significant capital investment, establishing them as key players in the global crypto market.

Further, wallets with transaction aggregation and NFT trading functionalities are likely to become increasingly popular among Japanese users.

Further, Japanese crypto enthusiasts are not only excited about the space but also actively trade. Their focus is on established, large-cap coins like Bitcoin, Ethereum, and others that Japan’s Financial Services Agency (FSA) has approved. This preference for well-known tokens is likely due to regulations that limit leverage on riskier derivative products.

From Mt. Gox Creditor Repayments to Sony’s Bold Move

The country stands out from other crypto markets. Users actively use popular decentralized exchanges (DEX) like Uniswap and PancakeSwap. But traders also show a strong preference for local centralized exchanges.

For crypto wallets, Metamask remains the leader, but Bitget Wallet comes in second, followed by Phantom, Trust Wallet, and Coinbase Wallet, the study showed.

Japan has a long history with cryptocurrency, marked by both innovation and setbacks. In 2014, the major exchange Mt. Gox suffered a hack that resulted in the significant Bitcoin losses for investors. This event led to years of legal wrangling, but finally, Mt. Gox began repaying its creditors last week, offering a glimmer of hope for those affected.

Also last week, Japanese tech giant Sony Group entered the crypto market by acquiring the crypto firm Amber Japan. This move could substantially impact the gaming industry, allowing players to trade cryptocurrencies across various platforms and games securely.