Japan has been the hotspot for cryptocurrency innovation over the past few years. However, a recent report by Statista has suggested that the popularity of cryptocurrencies within the Asian country is falling, and is lower than many countries in Latin America and Turkey, which topped the list. However, in a recent development, the Japanese Consumer Affairs Agency(CAA) has reported a significant increase in the number of queries regarding cryptocurrencies.
The CAA revealed that there were over 3,657 cases with complaints related to cryptocurrency exchanges. The number constituted a 70% increase from 2017’s figures, which amounted to 2,166 cases. The CAA has seen a persistent increase in the number of cases regarding cryptocurrencies since 2014. Further, the CAA has recorded a yearly growth of complaints that surpassed the previous year by 3.5X, and 1.7X more than the year prior.
According to the CAA, complaints and queries mainly came from exchange customers, who faced problems while receiving or transferring funds. Some cases included inquiries about privacy, refunds in the event of theft or platform issues, and poor user interface on some exchanges. Cases with complaints against traders claiming certain exchanges engaged in fraudulent behavior, false advertising, withholding customer deposits, and not delivering purchased cryptocurrencies, were also reported.
The reports also disclosed that queries related to Bitcoin have decreased over the years, with most complaints and queries revolving around altcoin trading.
Japan’s Financial Services Agency (FSA) had recently announced its intention to introduce tighter regulatory control on cryptocurrencies. The FSA will most likely co-ordinate with the CAA to investigate these complaints and queries.
This spike in the number of complaints over the years is an indication of steady interest in cryptocurrencies in Japan, despite the regulations imposed by the Japanese government after the Mt. Gox and Coincheck hack. A CryptoCompare had revealed that the Japanese Yen had made its way into the top five currency pairs against BTC and BCH, as of June 2019.
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