In Mid-COVID, Active Crypto Exchanges in Japan is Decreased
August 4, 2020 10:58 am
A report updated by Japan’s self-regulatory body JVCEA proves that the number of active crypto traders in the country decreased in March.
According to data published in March 2020 by the Japan Virtual and Crypto assets Exchange Association (JVCEA), in March, due to the rise in fiat deposits, overall activity on crypto exchanges decreased in Japan and the number of active crypto accounts registered in the country decreased from 2,048,501 in February to 2,044,806, which means that 3,695 fewer accounts may not have traded any digital assets.
Fiat Deposits increase, Crypto activity decreases
Per the Report by Yuya Hasegawa, a Market Analyst at bitbank that though activity among crypto traders declined in March, the number of fiat deposits on exchanges raised in Japan. One of the reasons behind this may have been due to households expecting to receive a 100,000 yen roughly $940 stimulus payment which had been proposed by the Japanese government.
Per the analyst, many of these deposits did not stay on exchanges very long. Prime Minister Shinzo Abe announced a national state of emergency in Japan beginning April 8. In an August 3 report, Hasegawa said:
“When the Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash,” some investors may have done so to prepare for potential risks, such as reduced income and unemployment, that could be caused by a state of emergency.”
The Decrease in Crypto Trading in Japan
Though, Hasegawa states a slender drop in the number of active accounts “does not necessarily mean that the Japanese users are losing interest in cryptocurrencies.”
If anything, activity may have raised as Bitcoin (BTC) looked particularly bullish in its rise to $12,000.