China, Japan and South Korea: feelings about Bitcoin
China’s relevance to the growth of the crypto industry cannot be overstated. Even now, despite a lack of government support and even tough crackdown by government agencies, China stands as a colossus among nations.
China accounts for over 60% of the global hash rate for bitcoin, and 60% of all bitcoins in circulation have been mined in China. In China, some of the largest crypto startups in the world were founded and several Bitcoin billionaires like Jihan Wu and Micree Zhan, founders of Bitmain, were born.
Since 2009, the Chinese authorities have stopped regulating Bitcoin and cryptos. Hence, a thriving ecosystem has been created with ICOs, mining, crypto exchanges, and online wallets.
However, that changed in 2017 when the Chinese government increased pressure on exchanges, banned ICOs, and reviewed all crypto-based businesses. Even so, the country’s role in the rise of Bitcoin remains.
Currently, the country prefers blockchain technology over cryptocurrencies and is launching the Blockchain-Based Service Network (BSN) – a blockchain for blockchains. The latest move was aimed at the introduction of a CBDC, the digital yuan.
Japan is widely regarded as a bastion of technological advancement and leads the integration of cryptocurrencies in the Far East.
In Bitcoin lore, Satoshi Nakamoto, the creator of Bitcoin, is considered to be Japanese. While some believe that Satoshi Nakamoto is just a pseudonym, there is an undeniable relationship between Japan and Bitcoin.
Bitcoin’s popularity has skyrocketed in Japan, with well over 3.5 million residents using the cryptocurrency, accounting for 11% of the global Bitcoin trading volume. The reason for Bitcoin’s boom in popularity is closely related to the government’s stance on digital currencies.
The Japanese government was the first in the world to pass laws recognizing crypto assets. This recognition of cryptocurrencies brings Bitcoin into the purview of the Financial Services Agency.
As a result, many financial institutions and Japanese companies have adopted Bitcoin and provided crypto services to their customers. Under Japanese law, the mining of Bitcoin is not regulated. However, if the mining system includes CISIs and the sale of equity, it is subject to tax.
Despite government support, Bitcoin and other cryptos faced challenges like the Coincheck Hack that resulted in the loss of $ 560 million and the government’s decision to ban privacy coins.
On the downside
- Bitcoin is weakening during Asian trading as the BOJ introduces new policy.
- South Koreans will pay 20% tax on crypto holdings from January 1, 2022.
- The tax is introduced when profits exceed 2.5 million won (US $ 2,208) while profits below that are tax-free.
- The move has already sparked revolts as petitions are being signed to stop implementation.
Like Japan, South Korea has been a leader in the use of cryptocurrencies, especially among its increasingly tech-savvy (and growing) young population.
A recent study showed that more than a third of the country’s working population was actively investing in cryptos like Bitcoin.
The government of Seoul, the capital of South Korea, announced that it is introducing its cryptocurrency “S-Coin” to maintain the supportive stance of Korean President Moon Jae-in on blockchain technology.
The South Korean National Assembly has also passed new laws that allow the regularization and legalization of crypto exchanges and provide sufficient incentives for investors to invest in Bitcoin.
The youth unemployment crisis in South Korea is part of the boom as young people choose Bitcoin to improve their incomes. Additionally, the political instability created in the region by North Korea has led more investors to view Bitcoin as a safe choice due to its decentralized and secure nature.
Read on on DailyCoin