Characteristics of Cryptocurrencies

Cryptocurrency, like the rest of the currencies, you can’t handle by your hand, so there are huge differences in the rest of the fields. Some of those differences are as bad as some are good. At this stage of the discussion, we will look at the features of cryptocurrency. 

“Cryptographic assets (virtual currency)” is a property value that can be exchanged on the Internet, and is defined in the “Act on Settlement of Funds” as having the following properties:

• ⦿The first thing that can be said is that no matter what the cryptocurrency or bitcoin says, its transaction process becomes very instantaneous. So it has a reputation for speeding up the transaction process.

• ⦿If you own it, you own it. No one else will be able to interfere in any way here at all.

• ⦿In the case of cryptocurrency, a bitcoin or cryptocurrency user will be able to create several accounts. And you don’t need any personal information or photos to create an account here.

• ⦿If the cryptocurrency is sent to someone else by mistake, it will not be refunded. And that is why the cryptocurrency is non-refundable. This is one of the bad qualities. So you have to be very careful during the transaction.

• ⦿It can be used for payment of payments to unspecified persons  

• ⦿Electronically recorded and transferable

• ⦿Not legal tender or legal tender-denominated assets (prepaid cards, etc.)

Cryptocurrency assets have attracted a great deal of attention as a mechanism for exchanging property values ​​without going through a third party such as a bank.

Generally, crypto-assets can be obtained and exchanged from businesses (cryptographic asset exchange companies) called “exchanges”. Cryptocurrency exchange business can only be carried out by businesses registered by the Financial Services Agency / Finance Bureau.

Cryptocurrencies are not fiat currencies issued by the state or its central bank. It is also important to note that the price of crypto assets tends to fluctuate significantly due to various factors such as the supply and demand relationship of users because they do not have supporting assets.

In addition, there are many reports of fraud related to crypto-assets, so be careful. For details, please check the rules of the Financial Services Agency, Consumer Affairs Agency, and National Police Agency.