Is Japan Set to Turn a Crypto-Nation?

The Japanese Labor ministry has seen a drastic bullish behavior of the corporate businesses and dominant companies requesting to the government to turn dealing in cryptocurrency viable. This ignites a fire of concern in the Japanese ministry as Reuters has reported a cyber theft of $530 million as hackers drained the Japanese cryptocurrency exchange, Coincheck.

Cryptocurrency exchange Coincheck’s signboard
Source: Reuters

The Japanese finance minister, Taro Aso has described the crypto-market to mature further and that suitable measures must be taken in order for the investors and the customers at the cryptocurrency’s disposal, to not be scammed off of their invested cash. The minister remarked the lofty cybercrime as,

It was a matter for great regret that illicit access caused a massive cryptocurrency outflow from Coincheck on Friday. The Financial Services Agency (FSA) must appropriately monitor cryptocurrency traders to protect users. We will appropriately weigh the balance between promotion of innovation and protection of users in (supervising) cryptocurrency exchanges.

The humongous heist was pulled off in January of the current year. As the ministry expected for the companies and the investors to settle down a bit and soak in the investigation process with their hearts afraid, the exact opposite trend somewhat confused the labor ministry. The Japanese labor ministry has always stood along with the Labor Standard Act but as the discourse turns eruptive, the ministry has tended to find solace in holding a national strategic advisory council, on 14th of February. The council intends to debate over installing systems that can enable the salary transfer via the installed system onto the destined virtual wallet of a person, more like a prepaid card function.

Though there are not an immense amount of foreigners working in Japan but Nikkei reported an 18% increase this year. The main issue behind discussing the number of foreign workers all over Japan is to find empathy for those foreigners as they find a great difficulty in opening a bank account in Japan. The government was devising the virtual wallet as a way for such to easily acquire a salary without any sort of hindrance. The Japanese banks, on the other hand, keep their strict policies still intact, as to when a person turns able to open an account, an issue i can state owing to my own personal experience in Mizuho Bank, Japan.

The NSSZ (National Special Strategic Zone), which holds the tedious job of bringing continuous reforms to the Japanese economic system has asked the government authorities to pacify the crypto-loving folks by introducing adopting of the cryptocurrency to the nation-wide use as well devise ways to delve into the newer era of dealing in financial and monetary resources. The Labor Standard Act has been intact for quite a prolonged period of time and the ministry of health, labor and welfare have been a continuous oppositions to the virtualization of money stating that as the operator of the cryptocurrencies goes bankrupt, they will still revert to the concrete means of salary payment.

Regional revitalization minister Hiroshi Kajiyama has nodded yes in approval that he does have a suitable suggestion as to how the virtual system can overtake the existing one in the smoothest and easiest way possible. Doreming Holding, a software company who has been put to the task of coming up with a sound proposition to installing the above planned system all over the nation. They prepared a presentation and presented it with the Prime Minister of Japan, Shinzo Abe being among the audience. They stated,

We developed a software that deregulates the current state regulation to enable digital payment of wages to electronic wallets on mobile smartphones. It should stimulate not only payment for foreigners, but it can also be used for consumption.

Japan has seen an immense increase in people pouring in form outside the “Land of the Rising Sun” since 2012. The number of foreigners have increased drastically and so has their bread earners too that has been taking a toll over the job opportunities all over Japan as reported by Nikkei. Though there exist a great number of restrictions for the foreign workers who come looking for an honest living and can find no better place on earth than Japan, people have been keen in igniting a fire of concern towards this topic too, as per late. Japan has been known to keep foreigners distant when it comes to official matters though the country ranks among the top being friendliest towards the tourists.

Masatsugu Asakawa, a financial diplomat stated;

Cryptocurrency regulation was likely to be on the agenda at the March meeting of G20 finance ministers and central bankers in Argentina.

The United States of America has introduced the “payroll card” system to facilitate the companies hiring independent contractors. These payroll cards operate on the same prepaid card function. The Governor of Tokyo, Yuriko Koike, faced a rather unfamiliar term in the form of the “payroll cards” as considering the very system to be introduced as to open a separate bank account, foreigners must have an address and a residence or an “Alien registration card” valid for an exceeding period of a year.

The introduction of the payroll cards can bring in the ease for the foreign workers who can easily have points of “virtual coins” in their wallet to spend off the way they like to retrieve as cash out of an ATM.

Though the inclusion of such a system can revolutionize the entire salary distribution system in Japan, The Labor Standard Act. fanatics regard the conversion as rather deviation from the law as it states the salary must be packed up in an envelope or a bag by the employer afore being handed to the employee.

Mohammad Shazil

A Riverside, CA born Electrical Engineer who bears the passion to write over every happening around. A crypto zealot. Shazil is the sub-editor of BlockPublisher news. Contact the editor at editor.news@blockpublisher.com

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