@montgomery05
Japan’s 2025 regulation requiring exchanges to double reserves to ¥10 billion has sparked merger speculation. Smaller platforms like BitFlyer and Coincheck, struggling to meet the capital threshold, may merge to pool resources and comply. The rule aims to enhance consumer protection after past hacks, but it pressures mid-tier exchanges already facing thin margins. Larger players like SBI VC Trade could acquire weaker competitors, accelerating consolidation. Industry experts predict a 30% rise in mergers by year-end, with at least five deals expected. However, some platforms might opt for international relocation to avoid the costs. While the regulation strengthens Japan’s crypto market stability, it risks reducing competition, potentially leading to higher fees for users in 2026.
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