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Coinbase assured Japan will let it sell cryptocurrency by 2019

Japan’s tough stance on cryptocurrencies may be a mood killer for most businesses, but Coinbase is loving it. In fact, the aggregation believes the added scrutiny in the country gives Coinbase an advantage over other cryptocurrency businesses.

“The Japanese government is more focused on security. That is good for us,”‘ Coinbase’s chief policy officer Mike Lempres told Nikkei Asian Review in a recent account in Tokyo.

Lempres added added that the talks of accepting a authorization are “going well” with the Financial Casework Authority (FSA), and they are assured the authorization by next year. “We are… committed to accepting it done. It will absolutely be in 2019.”

Coinbase’s optimism is very surprising, given how frugal FSA has been so far in acceding licenses to cryptocurrency exchanges. The last authorization was accepted in December last year and the agency has more than 160 applications awaiting with it.

FSA is very determined on security. The agency has made it clear that exchanges should advance their system risk administration before they can be accustomed to accomplish in the country.

Coinbase is not the first major barter to try its luck in Japan either. Binance has already tried and failed. The barter was based out of Japan until the FSA served it a notice for operating after permission — banishment it to move to Malta instead. 

But Coinbase thinks it fits the bill perfectly. The aggregation believes that the broker aegis mechanisms active on its barter are enough to affect the Japanese authorities.

Lempres said that out of their 550 employees, dozens are committed to security. Ninety-nine percent of the funds are stored offline, with only 1 percent held in hot wallets. The amount in hot wallets is affiliated to the internet and accessible to hacking but it is absolutely insured, he assures.

Coinbase says there is a great demand for a reliable cryptocurrency barter in Japan and it can fill that gap.

“Japan has been an active large market from the very beginning, and has proved airy as it bounces back from several bad experiences,” Lempres said. “We think there is great demand for a trusted provider of casework here.”

But, there’s a accessible hiccup in Coinbase’s “all too good” plan. The exchange’s system is based in the US, and the FSA may crave it to run its system in Japan before acknowledging to ensure that it can adviser the affairs properly. But, Lempres acknowledges that it will accommodation the exchange’s security. He said:

We have aggregate built to assure our storage… in the US We won’t do annihilation to even raise achievability of a hack. It would be hard for us to alike what we do in the U.S. today in Japan and other countries.

Japanese authorities have maintained that they are not in favor of “excessive” checks on cryptocurrency businesses — they only want to see the aegis measures improved, abnormally in the wake of Coincheck’s $500 actor hack in January this year.

If Coinbase does end up accepting a authorization to accomplish in Japan, it will absolutely be a cogent boost to its plan of acceptable “too big to fail.”

Published October 10, 2018 — 11:03 UTC

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