Coinbase has gone all in, in the Japanese market as it says its focus on security will certainly get the regulatory approval from Japan’s FSA in 2019. The US crypto exchange believes country’s crypto crackdown is good for them and that the market has great demand.
Coinbase says Japan’s crypto crackdown “good for us”
According to the US-based crypto exchange Coinbase, tighter security on the crypto industry in Japan will work to its advantage and shows the confidence in winning the regulatory approval in the country.
The local media source, Nikkei Asian Review reported that Mike Lempres, the chief policy officer at Coinbase revealed that talks regarding obtaining the license are “going well” with the Financial Services Authority of the country, further stating:
“We are… committed to getting it done. It will certainly be in 2019.”
Just last month, one of the largest crypto exchanges in the US, it announced the plan of expansion into Japan. Coinbase boasted about focusing on security as Lempres shared that dozens of its employees are dedicated to security and that 99 percent of funds are stored offline and the remaining 1 percent held in hot “hot wallets” is fully insured.
“The Japanese government is more focused on security. That is good for us.”
Coinbase has confidence in Japanese crypto market
However, there are still issues under discussion for regulatory approval, one being if the authorities will require their system to be managed in Japan. Though this will improve FSA’s ability to monitor, Coinbase has to face additional security risks as Lempres says:
“We have everything built to protect our storage… in the U.S. We won’t do anything to even raise the possibility of a hack. It would be hard for us to duplicate what we do in the U.S. today in Japan and other countries.”
Now, a number of crypto exchanges are awaiting approval in the country that has been considered a haven for cryptos but after a series of thefts and hacks is going through a pullback and increased security pressure from the authorities.
Reportedly, the increased regulatory scrutiny in countries is putting a dent in investors’ interest and driving them away. Moreover, the crypto market, in general, is not showing much activity as Bitcoin volatility hits a 17-month low. However, Coinbase is confident as Lempres comments:
“Japan has been an active large market from the very beginning and has proved resilient as it bounces back from several bad experiences. We think there is great demand for a trusted provider of services here.”
Now Coinbase looking for approval to operate as a crypto exchange in Japan is being closely watched to analyze the country’s openness for new players.
A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com