Around March 2020, it was announced by the country's self-regulatory body that the number of active Japanese traders has declined.
The nation's cryptocurrency trading activity was noticed to have reduced while fiat transactions increased. This was before the nation's prime minister declared a state of emergency. The state of emergency, which started on April 8th, was necessary to minimize the virus from spreading throughout the country.
The number of active traders dropped between February and March, as presented by the Japanese Virtual Currency Exchange Association (JVCEA). The association is a regulatory body for the Japanese cryptocurrency industry. As claimed by the report, about 3,695 traders have not traded cryptocurrencies during the global lockdown.
Another report from crypto analyst, Yuya Hasegawa, showed that more people were depositing fiats on crypto exchanges despite the reduction in cryptocurrency trading.
The analyst's report revealed a surge in the number of fiat deposits even though there was a reduction in the population of active crypto traders. This could have been because citizens were anticipating the stimulus payment promised by the government.
The report further argued that many traders had to sell off their crypto holdings to stack up some cash to cushion the economic impact of the Covid-19. He also suggested that traders may have taken this step to prepare for the risks that could result from the state of emergency.
The analyst stated that the decline in traders' activities doesn't imply that traders in Japan are losing interest in digital currencies.
Source: Cointelegraph
