On Monday 4th June, cointelegraph Japan reported that Major US crypto wallet provider and exchange service Coinbase has revealed its intentions to join the Japanese crypto market.
Coinbase expects to apply for a license with the nation’s financial regulatory, the Financial Services Agency (FSA), “within the year,” a procedure that has been required for all crypto trades working inside the nation since the change of Japan’s Payment Services Act in April 2017.
The US company is said to be associating with Mitsubishi UFJ Financial Group (MUFG) on its development to the Japanese market. As indicated by CT Japan, MUFG has put more than 1 bln yen in Coinbase since 2004 through Mitsubishi UFJ Bank and Mitsubishi UFJ Capital, among others.
CT Japan additionally reports that Coinbase’s Japanese trading service will center on supporting major digital currencies, for example, Bitcoin (BTC) and Ethereum (ETH).
As Cointelegraph previously revealed, Coinbase has more than 20 mln clients and needs to date traded $150 bln in digital assets on its trade platform. In 2017, it announced $1 bln in income, as per figures from Recode, and allegedly valued itself at around $8 bln in an acquisition deal this spring.
The exchange has launched series of new products specifically for drawing in major institutional customers – strikingly including a custody solution established in an association with an SEC-compliant third-party actor.
Japan’s crypto market keeps on demonstrating blasting crypto adoption levels, with CT Japan referring to ongoing figures from Japan’s Virtual Currency Exchange Association that estimate the number of Japanese crypto investors at 3.5 million.
This makes it an appealing market for outside capital, despite the nation’s undeniably stringent crypto regulatory climate. Prior this week, Japanese crypto exchange BitTrade was procured for $50 mln by a Singaporean business person, who turned into the first foreign investor to hold a 100 percent stake in an FSA-authorized trading platform.
Coinbase, as far as concerns its has concentrated on working intimately with regulators to enhance its security and compliance measures, with ongoing reports developing that the organization is trying to get a federal banking charter for its US activities.