Coinbase Is Waiting For Operating License In Japan

The US cryptocurrency exchange Coinbase, which is waiting for an operating license in Japan, noted that the ongoing crackdown on cryptocurrencies in the country will give it an advantage because of its tougher security position. The exchange expressed confidence that in 2019 it will receive regulatory approval.

Coinbase chief political officer Mike Lempres in an interview with Nikkei Asian Review said that negotiations on obtaining a license are with the financial regulator of the country.

The FSA has not yet issued a single license for cryptocurrency exchange this year, despite the fact that it has accepted 16 applications. Meanwhile, more than 160 firms, including public companies, are planning to apply for such a license in Japan.

As for guarantees for investors, he said that 99 percent of the funds are stored offline, and only 1 percent is stored in hot wallets, which are accounts connected to the Internet. That 1 percent is fully insured, he said.

According to him, among the problematic issues – whether the FSA will require management of the exchange system in Japan, which will improve the ability of the FSA to monitor transactions. However, Coinbase sees this as an additional security risk.

For a long time, Japan was considered a haven for cryptocurrencies. However , the $ 532 million hacking of the domestic crypto-exchange Coincheck in January, as well as a number of other high-profile thefts, led to stricter control by the Japan financial services Authority in cryptographic transactions.