Japan is one of the countries that have welcomed cryptocurrencies. Unlike other countries that curtailed the use of cryptocurrencies, you can now see a number of Crypto ATMs in the country. Its stores are also accepting Bitcoin as payment.
However, after the incident where Coincheck was hacked, Japan wanted some changes in their regulations pertaining to cryptocurrency exchanges. And for this reason, Kraken decided to stay out of the country. However, things are different in the case of Coinbase.
Coinbase, the operator of the largest US-based crypto exchange, is already looking to head to Japan. And why not? This is where a large chunk of worldwide Bitcoin trading takes place. Nao Kitazawa who is a former Morgan Stanley banker and fintech executive is now the new Japan CEO for Coinbase. Coinbase also announced that they are working closely with regulators in order to ensure the smooth transition.
The Largest US Digital Currency Exchange
Coinbase was founded in 2012. It made its way to become the largest US digital currency exchange in terms of volume. Also, it is currently operating in 32 different countries including Singapore. However, it lacks presence in Asia. And this move is most likely a good thing.
According to Dan Romero who works as the vice president and general manager of Coinbase, “as a regulated, compliant crypto company in the US, we will focus on building that same level (of) trust with new customers in Japan”. He added that this attempt by Coinbase is aimed “to accelerate the global adoption of cryptocurrency”.
Japan is currently one of the countries that adopted cryptocurrencies in its daily affairs. Last year, Japan made Bitcoin as a legitimate mode of payment. In fact, around two-thirds of the entire Bitcoin trading in the world is in Japan.
How Will Coinbase Adjust to New Rules?
Japanese regulators are now strict when it comes to the operation of crypto exchanges in the country. This is following the incident wherein Coincheck lost more than $500 million of customer funds due to hacking. And after implementing the new rules, there were already some cryptocurrency exchanges that were suspended.
Japan can give exchanges mixed results. Kraken decided to end its trading services after the mentioned regulatory changes while Monex Group decided to purchase Coincheck for $34 million and is now looking to restore its operations. There are also some companies waiting in line in order to get the approval of regulators such as Line Corp.
Increase in Trading Volume?
Could this mean an increase in trading volume once they’ve landed in Japan? It is also worth mentioning that with its CEO in Japan, there is a chance that Coinbase is off to a good start. He is the former COO of Money Design, which is a company that has pioneered automated investment platforms in the country. However, Nao’s true passion is in the crypto industry.
Coinbase entering Japan and meeting its new regulations can be a good thing. Not only will they be able to increase their presence in Asia, it is also possible to increase client confidence considering the new rules and regulations were geared towards protecting investors.