Japan’s Financial Services Agency (FSA) has revealed that the number of inquiries it received relating to cryptocurrencies has dwindled in the last quarter of 2018. Therefore, it has been assumed that the decline is either caused by users’ disinterest in virtual currencies or their confidence in the crypto industry, according to Finance Magnates on February 8.
Japan’s FSA Points Out Decline in Consultations from Companies
Per the report, the FSA has noted a decline in the number of inquiries it received such as complaints, dispute resolution, advice, and general inquiries in the fourth quarter of 2018. Specifically, these consultations have reduced by 788, 443 in comparison with the third quarter of 2018.
Likewise, the cases made in the third quarter of 2018 was 371 less than that of the second quarter. Between July 1, 2018, to September 30, 2018, 1,231 consultations were made. Moreover, areas such as loans, deposits, and similar fields had the highest number of inquiries (2,874) in the fourth quarter, while Investment products were next in demand.
Uncertainties to the Cause of the Sharp Decline in Requests
While there are uncertainties as to what may have caused the sharp decline, assumptions have been made that it could have been caused by the market’s performance. Most virtual currencies were on a decline throughout 2018 and there must have been expectations that the market will restore towards the last quarter of the year.
Also, cryptocurrency investors may have lost interest in the volatile nature of the market and sought other investment opportunities. Asides customers, some companies in the industry have had to fold or lay off some of its workers. An instance of this is the case of GMO internet and DMM.com which had closed down in 2018. Another way to look at it is that the decline in consultations could have resulted by customer’s confidence in the market.
190 Crypto Companies Made Inquiries to Launch Products in Japan
Though inquiries have declined, BTCNN on December 28 informed of the FSA’s report which reveals that 190 companies have made inquiries on how to launch products in the Japanese cryptocurrency market. The financial regulator also noted that there has been an increase compared to the 160 companies who have sent in an application in August.
As BTCNN reported on February 3, the Japanese Yen is the world’s leading national currency when it comes to Bitcoin trading. The BTC/YEN trading volume as reported by Coinhill at that time was 409,000 which surpassed the BTC/USD trading volume of 344,000 and has been the case since December.