Largest bitcoin exchange to open in US

The world's largest exchange for crypto currency bitcoin by trading volume is set to launch in the United States.

Tokyo-based BitFlyer, yesterday announced that it became the fourth digital currency exchange to receive a "BitLicense" to operate in New York. According to the exchange it also has licences to operate in 40 other states.

The three other exchanges with a ''BitLicense,'' granted by New York's Department of Financial Services are Coinbase, Circle and Ripple.

Bitcoin trading volume in Japanese yen regularly accounts for 60 per cent or more of global trading volume in the digital currency, according to CryptoCompare. According to the site, BitFlyer has nearly 80 per cent of that bitcoin-yen trading volume. In contrast to the hostile approach of some governments, the Japanese government has recognised bitcoin as a legal form of payment and licensed several exchanges.

Meanwhile, the digital currency has multiplied over 10 times in price this year to a record high of $9,929.61 today, according to CoinDesk.

"Bitcoin in 2018 transitions from something that is viewed as a social phenomenon and very quickly transitions into an established institutional phenomenon," Bartek Ringwelski, bitFlyer's US COO, told CNBC in a phone interview. "As regulation increases in the space people are going to feel more and more comfortable about bitcoin."

BitFlyer plans to offer zero per cent trading fees in the US through the end of this year and plans to add support for litecoin, ethereum, ethereum classic as also other digital currencies in early 2018.

Meanwhile, even as Bitcoin shot to all-time highs globally yesterday amid a massive rally, the price of a single Bitcoin shot past 1,000,000 yen. Even as the crypto currency approaches the sensational $10,000 level, in Japan the biggest psychological price barrier has been shattered. According to commentators, this is as it should be, since many believe that Japan started the massive Bitcoin rally to begin with.

While the price of Bitcoin has been increasing since the fall of 2016, according to commentators, Japan's formal recognition of Bitcoin as a legal currency, certainly helped it scale new heights. With the exemption of the currency from an 8 per cent consumption tax, Japan further increased citizens' desire to own Bitcoin.

According to commentators it is clear that the baton of domination of Bitcoin trade has passed to Japan from China. They say, the Japanese markets would exert a powerful effect on the global Bitcoin economy. They add, Japan's continued bullishness, indicated by Bitcoin's current price of 1,084,000 yen, would make an assault on the West's $10,000 level nearly inevitable.