Japanese Crypto Newbies Prefer Mercari and Rakuten Wallet, Survey Finds

A recent survey conducted by the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual Currency Exchange Association (JVCEA) revealed some interesting insights into the preferences and behaviors of Japanese crypto newcomers. The survey, which was released on June 26, 2023, aimed to understand the current state and challenges of the crypto market in Japan, as well as to propose policy recommendations for the government and the industry.

Survey Methodology and Demographics

The survey was conducted online from May 10 to May 31, 2023, and received responses from 26,595 individuals who had purchased or held cryptoassets in the past year. The respondents were divided into two groups: those who had started investing in cryptoassets in 2023 (newcomers), and those who had started before 2023 (veterans). The survey covered various topics, such as the reasons for investing in cryptoassets, the platforms and services used, the challenges and risks faced, and the expectations and suggestions for the future.

According to the survey results, the newcomers accounted for 56.2% of the total respondents, indicating a significant growth of the crypto market in Japan in 2023. The newcomers were also younger, more female, and more educated than the veterans. The average age of the newcomers was 38.7 years, compared to 41.9 years for the veterans. The proportion of female respondents was 19.8% for the newcomers, compared to 14.9% for the veterans. The proportion of respondents with a college degree or higher was 51.9% for the newcomers, compared to 45.5% for the veterans.

Reasons for Investing in Cryptoassets

The survey asked the respondents about their main reasons for investing in cryptoassets, and found that the newcomers and the veterans had different motivations. The newcomers were more likely to invest in cryptoassets for the following reasons:

• To diversify their assets and hedge against inflation (32.4%)
• To follow the trend and try something new (31.6%)
• To earn income and increase their wealth (30.9%)

On the other hand, the veterans were more likely to invest in cryptoassets for the following reasons:

• To support the development and innovation of blockchain technology (35.9%)
• To participate in the decentralized and peer-to-peer economy (34.7%)
• To earn income and increase their wealth (33.9%)

The survey also found that the newcomers were more influenced by external factors, such as media coverage, social media, and word-of-mouth, while the veterans were more influenced by internal factors, such as their own research and analysis.

Platforms and Services Used

The survey asked the respondents about the platforms and services they used to purchase, store, and manage their cryptoassets, and found that the newcomers and the veterans had different preferences. The newcomers were more likely to use the following platforms and services:

• Mercari (28.7%)
• Rakuten Wallet (27.4%)
• Coincheck (25.9%)

On the other hand, the veterans were more likely to use the following platforms and services:

• bitFlyer (38.6%)
• Coincheck (35.2%)
• BitBank (23.1%)

The survey also found that the newcomers were more likely to use multiple platforms and services, while the veterans were more likely to use a single platform or service. The survey attributed this difference to the fact that the newcomers were more curious and exploratory, while the veterans were more loyal and satisfied.

Challenges and Risks Faced

The survey asked the respondents about the challenges and risks they faced while investing in cryptoassets, and found that the newcomers and the veterans had different concerns. The newcomers were more likely to face the following challenges and risks:

• High volatility and price fluctuations of cryptoassets (58.7%)
• Lack of knowledge and information about cryptoassets (52.4%)
• Complexity and difficulty of using crypto platforms and services (48.9%)

On the other hand, the veterans were more likely to face the following challenges and risks:

• Security and hacking issues of crypto platforms and services (54.6%)
• High fees and commissions of crypto platforms and services (49.8%)
• Taxation and regulation issues of cryptoassets (48.7%)

The survey also found that the newcomers were more likely to seek external help and guidance, such as online communities, customer support, and educational resources, while the veterans were more likely to rely on their own judgment and experience.

Expectations and Suggestions for the Future

The survey asked the respondents about their expectations and suggestions for the future of the crypto market in Japan, and found that the newcomers and the veterans had different opinions. The newcomers were more likely to expect and suggest the following:

• More user-friendly and convenient crypto platforms and services (62.3%)
• More education and awareness about cryptoassets (59.7%)
• More innovation and diversity of cryptoassets (57.6%)

On the other hand, the veterans were more likely to expect and suggest the following:

• More security and reliability of crypto platforms and services (64.8%)
• More fairness and transparency of crypto platforms and services (60.4%)
• More collaboration and cooperation among crypto stakeholders (58.9%)

The survey also found that the newcomers and the veterans shared some common expectations and suggestions, such as the need for more favorable and consistent tax and regulation policies, the need for more social and environmental responsibility of crypto stakeholders, and the need for more global and regional integration of crypto markets.

The survey conducted by the JCBA and the JVCEA provided a comprehensive and insightful overview of the preferences and behaviors of Japanese crypto newcomers and veterans. The survey revealed that the newcomers and the veterans had different motivations, preferences, concerns, and opinions, reflecting the diversity and dynamism of the crypto market in Japan. The survey also highlighted the challenges and opportunities for the government and the industry to foster the growth and development of the crypto market in Japan, as well as to enhance the satisfaction and trust of the crypto users.