The world’s largest cryptocurrency exchange, Coinbase is reportedly expanding its trading services in Japan, by establishing an entirely new sister company “Coinbase Japan”. Despite the increased regulations and authorities tightening the crypto sector, Coinbase is entering the Japanese market. The all new business of Coinbase in Japan will enable trading of top cryptocurrencies; BTC and ETH.
The news first broke when the official Twitter account of Coinbase delightedly posted its new expansion to Japan.
We're excited to announce that Coinbase is coming to Japan! 🇯🇵
— Coinbase (@coinbase) June 4, 2018
Moreover, the tweet appears with the official blog announcement, posted on June 4. It states that the new trading business in Japan will be operating under the leadership of Nao Kitazawa. He is a leader in the fintech space and former COO of Money Design.
Nao Kitazawa will be the first CEO of the newly-founded “Coinbase Japan”.
Complying with local laws
Coinbase is also expecting a license from the Financial Service Agency (FSA) “within the year 2018”. However, back in April 2017, Japan’s financial regulators have made a license mandatory for all crypto trading firms functioning within the country.
In addition to business diversification, Coinbase is also teaming up with Japanese trading firm, Mitsubishi UFJ Financial Group(MUFG). It’s a potential banking partner who has made its contribution of over one bln yen in 2016, intending to support international expansion efforts.
Rolling out a crypto trading firm in Japan is quite difficult even for a San Francisco-based company, operating in 32 countries. The crypto regulations are often mounting on crypto business operating in Japan. Few of its latest regulatory measures were five-point Agenda for cryptocurrency exchange, self-regulatory body to prevent crypto hacks, a compulsory license from FSA and so on.
Coinbase already has more than 20 million customers. They are more than capable of offering an equal service compared to competitors on the Japanese market. Soon, with the FSA license, they will match the level of trust for Japanese crypto enthusiasts.