Coinbase is a digital platform which facilitates all kinds of transactions and storage of cryptocurrency. They are however not worried about the stricter financial regulations that are being enforced in Japan. In fact they are quite confident about getting approval from Japan’s Financial Services Authority (FSA) and are not worried about the possible changes in the cryptocurrency regulatory framework.
According to Mike Lempres, the Chief Policy Officer of Coinbase is of the opinion that their business will not be hampered by this increased regulatory scrutiny. He also, emphasized on company’s commitment to security and safety of their investors and their operations. He clarified that hot wallets of the platform which are prone to cyber attacks hold only a very small portion of its funds and promises it’s users with a full refund in case of a hack of those funds. In an interview with Nikkei Asia Review, Lempres said,
“The Japanese government is more focused on security. That is good for us.”
He said that in order to ensure approval for the platform in 2019, the company was having numerous high-level talks. With regards to the platform’s chances for getting approval, Lempres said the major bone of contention with the FSA was the issue about where the funds will be domiciled.
Coinbase had announced in June of 2018, that they were setting up shop in Japan and appointing Nao Kitazawa as the head of operations in the country.
The FSA is since the beginning of 2018, going forward with a more hands on approach and has demanded the platforms to up their security game in light of Coincheck’s hack in January 2018. Over 160 companies are currently seeking a green signal from the FSA but haven’t been granted approval since December 2017. Binance and some other platforms have withdrawn from the country after clashes with a very active FSA.
However, many, even in the face of such stringent security framework, consider Japan to be a cryptocurrency friendly nation, with an atmosphere conducive to the development of this emerging technology.