US crypto company Coinbase to open Japanese exchange
Japan is a sizable, enticing and incredibly lucrative market for cryptocurrency businesses and exchanges.
Major cryptocurrency exchange Coinbase plans to expand business operations to the Japanese marketplace.
Coinbase will formally register its intentions with Japan’s financial regulator, the Financial Services Agency (FSA) within the next 12 months, according to reports published by The Nikkei newspaper this week.
The United States’ digital currency exchange must apply for a license to open and run an exchange in Japan, according to the most recent amendment of Japan’s Payment Services Act, adjusted in April of last year.
Nikkei also reports that Coinbase will partner with Mitsubishi UFJ Financial Group (MUFG) as part of the deal. Cointelegraph Japan notes that MUFG has invested over US$9 million in Coinbase over the last 14 years.
Japan is an enticing and lucrative market for cryptocurrency businesses and exchanges. As of March 2018, there were approximately 3.5 million traders, according to the Japan Virtual Currency Exchange Association.
Coinbase offers consumers a digital wallet service and operates an exchange for institutional investors.
Earlier this year in April, US-based cryptocurrency exchange, Kraken, informed users in Japan that they will have to take conduct their digital trades elsewhere, as the company announced plans to suspend its Japanese services in the coming months. Kraken has been serving the Japanese marketplace since late 2014.
This follows a report from Japan’s FSA that shows a five-fold increase in bitcoin trading volume since 2014.
The world’s largest cryptocurrency exchange, Binance, received a formal warning from Japan’s FSA, highlighting the fact that it is has not officially registered with the financial supervisory administration.
Earlier this week, Binance chief executive Zhao Changpeng took to Twitter to refute claims that the exchange would be shut down in Japan, explaining that the company was in discussion with the regulatory organization.
However, that regulatory climate has not deterred Yahoo Japan from building a cryptocurrency exchange, though Yahoo has already properly registered the operation. It isn’t expected to open until next year, though.
Additionally, after investing in a more secure cryptocurrency trading platform and appyling for a Japanese license, crypto exchange Coincheck is poised for a comeback in Japan and has ambitions to expand to the US.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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