The second largest city in Japan, unveiling the mysterious veil of Osaka's cryptocurrency development

As one of Japan's largest and fastest-growing cities, Osaka boasts a mobile population of 19 million and is renowned for tourist attractions such as Shinsaibashi and Osaka Castle. However, hidden within is a thriving crypto economy, with numerous major cryptocurrency companies and countless international blockchain technology conferences quietly flourishing.

Magazine by Cointelegraph: Crypto City Guide

This article about Osaka's crypto development is taken from Cointelegraph Magazine. Cointelegraph Magazine is compiled and published by the international blockchain media Cointelegraph. In addition to derivative news content, it also delves into stories and personalities related to global cryptocurrency and blockchain. The Crypto city guides focus on the cryptocurrency applications, industries, and ecosystems of various cities around the world, investigating and analyzing them in-depth, and presenting them in long-form articles.

Background: Cryptocurrency Regulations in Japan

In May 2016, Japan became the world's first country to recognize Bitcoin and other cryptocurrencies as legal assets. Despite the Mt. Gox incident in 2014, which was then the world's largest cryptocurrency exchange collapse, the Japanese government did not ban cryptocurrencies. Instead, they legislated and implemented measures to protect investors.

In terms of regulation, the law mandates exchanges to register with the government and submit annual reports. It also empowers the Financial Services Agency (FSA) to conduct real-time monitoring and enforce changes in their business operations, as well as requiring service providers to properly implement user KYC to prevent money laundering and other illegal activities. Regarding taxation, the government imposes up to a 55% tax on income from cryptocurrency trading and mining, but starting from 2023, some tax regulations will be relaxed.

(For more details on the current state of the cryptocurrency market in Japan, please refer to this article.)

Cryptocurrency Adoption in Osaka

Bitcoin ATMs made their first appearance in Tokyo around 2014 and expanded to Osaka. Gaia also announced plans to establish 50 cryptocurrency ATMs nationwide within the next year, allowing users to withdraw up to $2,243 (300,000 yen) per day.

Life Aspects

Osaka serves as the headquarters for several cryptocurrency companies, including the Osaka Digital Exchange (ODX) established by the Japanese financial giant SBI Holdings in 2022, Gaia operating cryptocurrency ATMs, and the blockchain financial service Caica. The application of cryptocurrency technology is gradually expanding in the local area.

According to Coinmap's data, there are over 25 stores around Osaka that accept cryptocurrency payments. These include electronics giant Big Camera, consulting firms, restaurants, design companies, and even popular nightlife entertainment, local spas, and bars in Osaka that support cryptocurrency payments.

Education Aspects

Several universities in Osaka offer courses related to distributed ledger technology, blockchain, cryptography, etc., providing students and local residents with opportunities for physical or online learning to understand or develop secure decentralized apps.

Event Aspects

Whether it's technical summits or meetups, the diversity and activity level of events in the Kansai region are no less than those in Tokyo. This includes the Ethereum developer conference Devcon 5 in 2019, visited by Vitalik Buterin, and the Blockchain and IoT Conference (BIOTC 2023) scheduled to be held in Osaka in 2023.

Legal Framework Fosters a Crypto-Friendly Environment

Despite having some of the earliest and strictest cryptocurrency regulations, Japan's efforts seem unable to weaken the promotion of the blockchain and cryptocurrency industry. Faced with controversial and potentially industry-repelling cryptocurrency regulations, FSA officials explain: