Coinbase on Path to Getting Regulatory Approval in Japan

By Swati Kishore

US-based crypto exchange Coinbase has released a statement saying that its focus on security will ensure that it gets the required regulatory approval from Japan’s FSA within the speculated timeline by the year 2019.

As per a report, Coinbase is of the view that the crypto crackdown in Japan will only prove to be favourable for its entry into the market. Coinbase believes that the Japanese market has great potential. As per local Japanese news sources, the Chief Policy Officer at Coinbase Mike Lempres said that talks with Financial Services Authority are so far going well.

One of the biggest crypto exchanges in the US, Coinbase announced last month that it is very focused on security and 99 percent of the funds are stored offline, while the remaining 1 percent are stored in insured ‘hot wallets’.

While certain issues still remain under discussion, Lempres is confident about the Japanese markets. Lempres went on to add, “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.”

Japan has been long considered a haven for cryptocurrencies, but after a number of hacks and thefts the market is facing increased security measures by the authorities. This pullback and increased regulatory scrutiny is driving investors away from the markets in a number of countries. As Bitcoin volatility hits a 17 month low, the crypto market seems to have come to a halt. As per the comments made by Lemper, Coinbase is still very positive on the market in Japan:

“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.”

With Coinbase close to getting an approval in Japan, it will be very interesting to see how open the country is to new players in the cryptocurrency sphere. 2019 might just prove to be the year of cryptocurrency in Asia.