Analysts publish 2019 financials for Japanese crypto exchanges.

BitFlyer led the ranking of Japanese crypto exchanges by assets in custody — more than 105 billion yen (over $993 million at the time of writing). This is evidenced by the data from the financial reports of local cryptocurrency platforms for the 2019 fiscal year.

Assets in custody refer to the aggregate of user deposits, crypto assets held in custody, and assets issued under debt obligations.

In second and third places by assets held in custody are Coincheck (about $681 million) and Bitbank ($491 million), respectively.

The leader in operating revenue was SBI Holdings’ crypto exchange VC Trade. According to the data, the figure exceeded 8 billion yen (over $75 million). Following VC Trade were bitFlyer and DMM Bitcoin.

Tamara Soykina, head of communications at the Japanese startup FEB Inc., and author of the Twitter channel Crypto Russia, noted that more than half of crypto exchanges were in the red, including Yahoo’s TaoTao platform, the regulated Bitcoin exchange DeCurret, Rakuten Wallet from retailer Rakuten, and others.

In Japan, in May this year, new rules governing cryptocurrency trading and taxation came into force. For example, leverage limits were introduced.

“High tax rates initially and the new May leverage limits are likely reasons why speculative fever is waning,” said Soykina.

Because of changes in rules for trading on margin, exchanges are focusing more on listing new altcoins, the expert noted.

Before listing a coin, exchanges consult the self-regulatory organization of the Japanese Virtual Currency Exchange Association (JVCEA), Soykina said.

In evaluating a project, JVCEA considers its potential, utility, financial condition, and the project’s approach to risk management.

According to Soykina, the Japanese cryptocurrency market, which was “fragile due to numerous regulatory prohibitions and the investment climate,” is quickly recovering.

As reported in a recent a study, the coronavirus pandemic has dampened Japanese interest in cryptocurrencies.

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