Guide to Osaka, Japan’s second-biggest city – Cointelegraph Magazine

City: OsakaCountry: JapanPopulation: 19 millionFounded: 1889 (as a municipality)Language: Japanese

Jump to: Understand, Crypto culture, Projects and companies, Financial infrastructure, Where can I spend crypto?, Education, Controversies and collapses, Notable figures in Osaka and Japan.

Understand

As one of the largest cities in Japan, Osaka and the broader Kansai region stand out in contrast to Tokyo for its unique dialect, seemingly grittier way of life, and as the gateway to the island of Shikoku and western Japan.

Though many arriving in the country tend to land at either Narita or Haneda near Tokyo, Kansai International Airport is also a popular point of entry for those looking for easier access to the historic areas of Kyoto, Himeji Castle, Kobe — with its famous beef products — and the friendly deer of Nara.

Though the municipality only dates back to the 1880s, the area around Osaka has been home to Japanese people for well over a thousand years. In the 400s, the area where the modern city stands was called Naniwa-zu and contained a port with access to ships from the Korean peninsula and China — and some believe this was the means for Buddhism to first enter Japan, where it is widely practiced today.

Osaka Castle. (Pexels)

As with many Japanese cities, much of Osaka was leveled by American bombers during World War II. The recreation of Osaka Castle, which sits in the Chuo ward of the modern city, largely escaped the bombing — the original had already been destroyed in the 17th century. The city has been the setting for movies such as John Wick: Chapter 4 and boasts a unique variety of old neighborhoods like Shinsekai.

Situated roughly halfway between Tokyo and the western city of Fukuoka, Osaka has a reputation as one of the most cosmopolitan cities in the country, famous for its okonomiyaki pancakes and street food.

Crypto culture

Despite much speculation and research from crypto users over the last 15 years, no one has been able to definitively prove Satoshi Nakamoto was Japanese. Though he claimed to have lived in Japan, none of his posts on online forums suggested this was in Osaka, Tokyo or somewhere else entirely.

Japan was one of the first countries to recognize digital currencies as legal property under its existing regulatory framework, and one of the first to provide average users with access via crypto ATMs. (Though, knowing how ATMs at many Japanese banks work, they may have to be closed at 8:00 pm). Bitcoin ATMs made their debut in Tokyo around 2014 and made a return to major cities in 2022 after a lull due to a regulatory crackdown.

Most of the bigger crypto firms that have operated in Japan — including Mt. Gox, bitFlyer, Liquid and Coincheck — had headquarters in Tokyo, but financial giant SBI Holdings opened the Osaka Digital Exchange — a blockchain-based digital stock exchange — in 2022. According to data from Japan’s Financial Services Agency, Osaka is home to two registered digital assets firms: financial system developer Caica and major crypto ATM operator Gaia.

Meetup groups in the Kansai region, like their counterparts in Tokyo, continue to be active. The Kansai Bitcoiners group was established in 2013 and lists more than 200 members. Major figures in the crypto and blockchain space have visited Osaka for various events, including the Devcon 5 conference in 2019 as part of Osaka Blockchain Week. Ethereum co-founder Vitalik Buterin and the Shiba Inu dog behind the Dogecoin meme, Kabosu, attended.

Osaka will host the Blockchain and Internet of Things Conference and International Conference on Blockchain and Cryptocurrency in 2023 and the World Expo in 2025, which is expected to be a completely cashless event.

Vitalik Buterin at Devcon — Vitalik Buterin speaking at Devcon 5 in Osaka in October 2019 (Ethereum Foundation)

Projects and companies

Japan, in general, has a reputation for strict crypto regulations following the hacks of major exchanges including Mt. Gox and Coincheck. Osaka-based crypto firm Caica registered with the country’s Financial Services Agency in 2017, while the regulator shows that Gaia registered in 2021.

The Kansai region is also home to the headquarters of sports equipment firm Mizuho, which has launched its own NFT collection, as well as branches of technology firms including software-development-as-a-service company SotaTek, Panasonic, Mitsubishi and Sharp. In 2022, financial giant SBI Holdings opened the Osaka Digital Exchange — a blockchain-based digital stock exchange.

Amid the international fallout of crypto exchange FTX and its founder, Sam Bankman-Fried, FTX Japan users seemingly fared better than those dealing with other local subsidiaries. They were allowed to fully withdraw funds in February 2023. FTX filed for bankruptcy in November 2022, and many users in other countries have not been made whole.

“It’s one of a few countries […] required to segregate assets from corporate assets,” an FSA official told Cointelegraph in reference to Japan. “That framework works. Based on that, we have good insight that our regulation is too strict — so we are stifling innovation — but currently, some people seem to be changing their minds that the requirement we are providing is kind of necessary for really sustainable growth.”

Financial infrastructure

According to data from CoinATMRadar, there is only one crypto ATM operating in Osaka, run by the FSA-licensed firm Gaia. The company is authorized to handle Bitcoin, Ether, Bitcoin Cash and Litecoin. All crypto ATMs in Japan suspended operations in 2018 due to strict regulations, but a few made a return in 2022.

Where can I spend crypto?

Japan is still transitioning from the cash-only society it once was, but it was early in the game for contactless payments via its Suica and Pasmo charge cards. The COVID-19 pandemic forced many in authority to address remote working and options for online services for the first time, and crypto payments did not escape their notice.

According to Coinmap, there are 23 retail outlets in the Osaka area that accept cryptocurrencies as payment. These include electronic giant Bic Camera, consulting firms, restaurants, graphic design service companies, spas and bars. Many of the retailers are in proximity to the city’s Minami ward and Osaka and Umeda Stations — the main transportation hub for the area.

As in many parts of the world, some bars in the nightlife areas of Osaka have taken to accepting some cryptocurrencies as payment — likely in an attempt to capitalize on the growing interest in the space. BaR Fish and Kama Sutra Karaoke Bar in the city’s Chuo ward have wallet addresses ready for thirsty crypto users, and the spa Sakura Drop has allowed those needing a massage to pay for services in crypto since 2020.