One of the most important cryptocurrency platforms in the market, Coinbase, believes that regulations in Japan are good for the company. Mike Lempres, Chief Policy Officer at Coinbase, said that the firm ‘is good’ with the focus that the Japanese government has on the market.
Coinbase to Enter the Japanese Market
Japan is known as one of the most open countries toward virtual currencies. Although this holds true, the Financial Services Agency (FSA) of the country has taken hard measures to regulate the market.
Back in June, Coinbase announced that they were going to enter the Japanese market. However, and for reasons that have not been disclosed, the exchange and platform has delayed its plans.
Nao Kitazawa, a financial and technology expert, was selected as the CEO of the Japanese branch. His main role was to allow Coinbase to enter Japan complying with all the local regulation.
In a conversation with the Nikkei Asian Review, Mike Lempres talked about how the platform is working in the country. He explained that Coinbase made good progress. The company is going in the right direction so as to obtain a license with the FSA. The main goal of the team working in Japan is to obtain a regulatory approval by 2019.
The FSA is very strict with companies that want to operate in the market. Several exchanges and platforms have been hacked in the last years and the regulatory agency wants to protect investors.
About the Japanese market, Lempres said:
“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 or services here.”
Lempres has also explained that Coinbase holds just 1 per cent of consumer-owner crypto asses in hot wallets. The remaining 99% are all stored in cold storage wallets. At the same time, the 1% hold in hot wallets is also fully insured. Hackers and attackers targeted exchanges and crypto platforms that hold their assets in hot wallets.
Lempres said that the Japanese government is focused on security, which is good for the company. In the near future, we could see Coinbase entering the crypto market in Japan. However, it will have to comply with strict rules imposed by the Asian country.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.