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Blockchain in Japan

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Blockchain in Japan Blockchain in Japan " 1" Blockchain in Japan " "The impact of Blockchain is huge. Its importance is similar to the emergence of Internet” Ministry of Economy, Trade and Industry of Japan1 1 Japanese Trade Ministry Exploring Blockchain Tech in Study Group, Coindesk 2" Blockchain in Japan " About this report This report has been made by Marta González for the EU-Japan Centre for Industrial Cooperation, a joint venture between the European Commission and the Japanese Ministry of Economy, Trade and Industry (METI). The Centre aims to promote all forms of industrial, trade and investment cooperation between Europe and Japan. For that purpose, it publishes a series of thematic reports designed to support research and policy analysis of EU-Japan economic and industrial issues. To elaborate this report, the author has relied on a wide variety of sources. She reviewed the existing literature, including research papers and press articles, and interviewed a number of Blockchain thought leaders and practitioners to get their views. She also relied on the many insights from the Japanese Blockchain community, including startups, corporation, regulators, associations and developers. Additionally, she accepted an invitation to give a talk1 about the state of Blockchain in Europe, where she also received input and interest from Japanese companies to learn from and cooperate with the EU. She has also received numerous manifestations of interest during the research and writing of the report, from businesses to regulatory bodies, revealing a strong potential for cooperation between Europe and Japan in Blockchain-related matters. THE AUTHOR Marta González is an Economist and Software Developer specialized in FinTech and Blockchain technology. One of her apps, Crypton, a Bitcoin and cryptocurrencies price tracker, reached the top-5 most downloaded finance apps on Apple’s App Store in numerous countries including Japan. As an Economist she has worked at Trade Commissions in Latin America and at a former Spanish minister’s office as Strategy Consultant. She has also completed a business program at Waseda University in Tokyo. Marta has written a book about doing business in Japan. After living in Japan she moved to New York where she learned iOS App Development while working as a Product Manager for a FinTech startup. Lately she has become a certified Blockchain Developer. She can be reached at [email protected] and on LinkedIn 1 Invited by the GBA (Government Blockchain Association 3" Blockchain in Japan " Contents Executive Summary .................................................................7 List of Abbreviations ................................................................8 Glossary ...................................................................................9 Introduction ...........................................................................13 Blockchain Concepts .............................................................14 What is Blockchain?.............................................................................. 14 Consensus Mechanisms ......................................................................15 Types of Blockchains ............................................................................18 Blockchain Forks ..................................................................................19 Crypto Currencies .................................................................................20 Blockchain Adoption in Japan ...............................................26 Mt. Gox .................................................................................................27 Regulatory Overview .............................................................................28 Virtual Currency Act .............................................................................29 Taxation ................................................................................................29 Markets ................................................................................................ 31 Coincheck Hack ...................................................................................32 Bitcoin Adoption ...................................................................................33 Cryptocurrency Exchanges ....................................................35 Japanese Exchanges ............................................................................35 New Players ..........................................................................................36 Foreign Exchanges................................................................................ 38 Registration Process .............................................................................39 FSA Inspections ...................................................................................40 Industry Associations .............................................................42 Blockchain Associations........................................................................ 42 Virtual Currency Governance Task Force ...............................................44 Virtual Currency Study Groups ..............................................................44 FSA Blockchain Round-Table ...............................................................45 Other Associations ................................................................................45 4" Blockchain in Japan " Government’s position on Blockchain ...................................47 Ministry of Economy (METI) ...................................................................47 Shinzo Abe’s Cabinet ............................................................................51 Regulatory Sandboxes ..........................................................................51 FSA Sandbox Experiments ...................................................................53 Initial Coin Offering (ICO) ........................................................55 Tokens .................................................................................................55 ICOs in Numbers ..................................................................................55 Types of ICOs .......................................................................................57 FSA on ICOS ........................................................................................57 Guidelines on ICO Regulation ................................................................59 Japanese Private Blockchains ...............................................61 Public vs Private Blockchain ..................................................................61 Enterprise Blockchains ..........................................................................62 Hyperledger Iroha .................................................................................63 Bitflyer’s Miyabi .....................................................................................64 Orb DLT ................................................................................................65 Tech Bureau’s Mijin ...............................................................................65 Corporate Blockchain Adoption ............................................66 Why Blockchain ....................................................................................66 Blockchain vs Traditional Database ......................................................67 Startups ................................................................................................68 Blockchain in Finance ...........................................................................69 Blockchain in Trade ...............................................................................72 Blockchain in Insurance ........................................................................73 Blockchain in Food Traceability .............................................................74 Blockchain in Education ........................................................................75 Blockchain in Reward Points .................................................................75 Blockchain in Data management ...........................................................77 Blockchain in Energy .............................................................................78 Blockchain in Identity ............................................................................81 Blockchain in Intellectual Property .........................................................82 Blockchain Proof of Concepts (PoCs) ....................................................83 5" Blockchain in Japan " Blockchain Patents ...............................................................................85 EU & Japan ............................................................................88 Japan: Society 5.0 ................................................................................88 EU: Digital Single Market .......................................................................89 Eu-Japan Digital Week ..........................................................................89 EU – Japan Summits ............................................................................90 EU-Japan on Private Data .....................................................................91 Stella .....................................................................................................92 EU Blockchain initiatives........................................................................ 93 Opportunities
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