Coinbase’s Bold Move: Entering the Japanese Crypto Market

Coinbase Sets Sights on Japan

In a seismic shift, major US cryptocurrency wallet provider and exchange service, Coinbase, is planning to make waves in Japan’s bustling crypto market. Reported by Cointelegraph Japan, Coinbase aims to apply for a necessary operating license with Japan’s Financial Services Agency (FSA) within the year. This move comes since the FSA amended the Payment Services Act in 2017, making compliance mandatory for all crypto exchanges in the country.

Collaborating with Giants

Coinbase isn’t going it alone. The exchange service is collaborating with the Mitsubishi UFJ Financial Group (MUFG), which has been a stalwart supporter since 2004. They have already poured over 1 billion yen into Coinbase through various subsidiaries. You know, just a casual investment in your future crypto overlord!

Targeting Major Cryptocurrencies

When Coinbase launches its services in Japan, the focus will be on supporting leading digital currencies, including Bitcoin (BTC) and Ethereum (ETH). This strategic aim caters to the possibly crypto-hungry audience who are just waiting to swap yen for digital tokens faster than you can say “blockchain.”

Success Stories and Eye-Watering Numbers

With an impressive track record, Coinbase already boasts over 20 million customers. The exchange platform has processed trading in digital assets amounting to a staggering $150 billion. And they’re not slowing down; in 2017 alone, Coinbase reported $1 billion in revenue. It’s worth mentioning that they’ve recently valued themselves at around $8 billion! Talk about having a few bucks to play with.

Japan’s Booming Crypto Environment

Japan’s crypto market is heating up with a reported 3.5 million investors, making it a prime target for Coinbase’s expansion efforts. However, a cautionary note must be mentioned: despite its attractiveness, Japan has been tightening its regulatory framework for cryptocurrencies. Illustratively, the recent acquisition of the Japanese exchange BitTrade for $50 million by a foreign investor signifies the allure but also the challenges of entering this competitive landscape.

Coinbase and Regulatory Rigor

With eyes set on regulatory compliance, Coinbase is reportedly in talks to secure a federal banking charter for its operations in the US. This diligence showcases their commitment to security and compliance in a sector where unpredictability can be as rampant as a dog in a cat show.