Physical Japanese Bitcoin via Coin Fox

The price of Bitcoin has jumped in the wake of Japan recognizing the cryptocurrency as a legal payment method.

Bitcoin prices surpassed $1,130 on most exchanges worldwide, according to Bitcoin news site CoinTelegraph. That spike was largely due to a bill drafted by the Financial System Council that sought to change certain frameworks surrounding Bitcoin and other cryptocurrencies. Specifically, the law — which went into effect April 1 — brought Bitcoin exchanges into compliance with Japanese Anti-Money Laundering and Know Your Customer regulations. It also solidified Bitcoin’s recognition as legal tender within the country.

The bill can trace its roots to the collapse of Mt. Gox, an unregulated Bitcoin exchange based in Tokyo that has since become defunct due to a series of complications, insolvencies and allegations of fraud. The FSC’s bill seeks to fix the inherent issues with exchanges like Mt. Gox — such as the mishandling of user funds, the Japan Times reported.

In addition, last week, Japan’s Accounting Standards Board considered the development of standards and framework for the treatment of cryptocurrencies like Bitcoin. Under current Japanese accounting law, cryptocurrencies aren’t specifically addressed, leaving companies and consumers without any sort of official regulatory accounting framework, according to Nikkei Asian Review.

It’s a big announcement for Bitcoin, which has recovered by a week-long decline due to unresolved issues with the currency. And it’s the first bit of good news in a while — in March, the U.S. Securities and Exchange Commission rejected two exchange-traded fund proposals put forth by Tyler and Cameron Winklevoss, according to Business Insider — causing Bitcoin’s price to crash.

“As discussed further, the Commission is disapproving this proposed rule change because it did not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative behavior and practices and to protect investors and the public interest,” the SEC wrote in its press release.