Japan’s has been very strict in terms of regulating cryptocurrency exchanges. The financial services agency (FSA) have added tighter rules recently. But Coinbase one of the major cryptocurrency exchanges in the U.S sees this as their advantage.
According to Nikkie Asian Review, Japan is known as the cryptocurrency haven and there is a very large number of investors for this market. Since some of the scams and thefts, the FSA has imposed strict regulation on the exchanges. Coinbase has been waiting for the approval of the license to operate in the country.
Coinbase chief policy officer, Mike Lempres in the recent interview with Nikka Asian Review said.
“The Japanese government is more focused on security,” he said. “That is good for us.”
The focus of many cryptocurrency exchanges is on the security of the exchange. Due to the recent hack which has shaken the crypto industry. Thus Lempres said in Coinbase 550 employees are dedicated to security. And nearly 99 percent of their funds are stored offline and only 1 percent in “hot wallet”. He also mentioned about accounts that are connected to the internet can easily be hacked and thus 1 percent is fully insured.
But still, there are some of the issues which need discussion and regulatory approval. That is if the cryptocurrency exchange needs to be managed in Japan. But this will create security risks for Coinbase as the FSA needs to monitor transactions said Lempres.
Since December 2017 the FSA has not approved any new cryptocurrency exchanges. Over 160 crypto firms are waiting for the approval. But the regulator has allowed the exchanges to operate while they wait for the approval.
Coinbase has over 20 million accounts and has made a revenue of $1 billion this year. Thus the company has also planned to enter the Japanese market soon as it gets the approval.
Lempres said Japan has been very active cryptocurrency market since the beginning. Thus there is a very high demand for a trusted cryptocurrency service provider.