The promotion of the cryptocurrency to be utilized as a payment means for Japan’s huge public transportation system in being championed by the exchange DeCurret. However, the exchange has just restructured its capital.
On Apr. 10, the exchange released a press release announcing the issuing of new shares valued at 2.75 billion yen (about $25 million) in a third-party shares allocation. The firm is planning to utilize the capital towards the enhancement of transaction services for existing virtual currencies and expanding digital currency and settlement services.
Due to the spread of coronavirus, many prefectures in Japan have subjected to a state of emergency since April 8 as a measure to combat the spread. This has not affected Japan’s public transportation to a large extent. Despite the reduction in the number of trains and buses, several stations still have numerous commuters every day, with some noting a ridicously degree of apathy.
Despite the possibility of railway disruptions during the pandemic, the exchange is looking into another cryptocurrency payment system for the East Japan Railway Company (JR East). The JR East is a key investor in DeCurret.
The exchange’s proposed system would allow the topping up of the Suica payment card released by the railway company using cryptocurrency. When it comes to card usage, about 70 million were in use as of Mar. 2019.
The Japanese Financial Services Agency has allowed Decurret’s operation as a registered cryptocurrency exchange since it began trading in April last year. However, the firm may be faced with additional regulatory challenges soon.
The country is starting the enforcement of new laws to regulate cryptos. In 2019, the Japanese House of Representatives passed the Payment Services Act and Financial Instruments and Exchange Act, which will become effective starting May 1, 2020.