Hiroyuki Hiroyuki, president of the Japan Cryptocurrency Business Association (JCBA), talked about the current status of the Japanese cryptocurrency exchange in an interview. It said that at present, the Japanese virtual currency exchange is losing money as a whole. In the next six months, the exchange may be closed or merged. About half of the first batch of registered exchanges in September 2017 could persist, but the remaining exchanges suffered serious losses.
According to statistics from the Japan Cryptocurrency Exchange Association (JVCEA), another industry organization, as of 2019, the total number of customers registered by the 21 registered exchanges was only about 350,000 (including double counting). Hiroyuki explained why this happened. After the Coincheck flow was stolen in January 2018, the Japan Financial Services Agency issued business improvement orders to the exchanges, and the compliance costs of the exchanges tripled. In the case of rising costs, the transaction volume in 2018 has decreased, and by 2019 it will be further reduced to about half of the previous year. The cost of compliance has risen, the volume of transactions has decreased, and the revenue has fallen. As a result, the entire industry has lost money.