Coinbase, the leading U.S based cryptocurrency exchange is seeking to enter the Japanese crypto market in 2019 and has already started the process of seeking regulatory approvals from the country’s financial watchdogs.
“Talks on obtaining a license are ‘going well’ with Japan’s Financial Services Authority,” noted Mike Lempres who is the chief policy officer at Coinbase. Reported Nikkei Asian Review. “We are… committed to getting it done. It will certainly be 2019,” continued Mike.
With financial regulators in Japan maintaining a hawk eye on cryptocurrency exchanges in the country, Coinbase believes that the heightened scrutiny will be an advantage to them since they have a clean record unlike most Japanese cryptocurrency exchanges which have been plagued by hacking.
According to Lempres, out of the 550 people Coinbase has on its payroll, a bigger chunk concentrates majorly on ensuring the security of the platform. To further enhance the security of customer digital assets, the cryptocurrency exchange holds only one percent of funds in hot wallets while the rest are stored in cold wallets. The one percent, since it’s prone to hacking, is insured bolstering the confidence of its customers.
Coinbase’s intention to enter the market is “closely watched as a gauge of the country’s openness to new players.”
Although most of the regulatory procedures have been discussed, Mike revealed that the question of whether the Financial Services Authority will insist Coinbase be managed in Japan is yet to be discussed. But, according to Lempres, managing Coinbase in Japan “would be hard for us”
Even with such a security dented crypto market like Japan, Coinbase is optimistic the market is in dire need of a trustworthy cryptocurrency exchange. “The Japanese government is more focused on security. That is good for us,” Mike added.
Even as Coinbase is set to enter the Japanese crypto market in 2019, do you think regulators in Japan are open to new players?
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