Coinbase Launches in Japan, Partners With MUFG
Coinbase has announced that it has launched in Japan, according to a blog post published on Aug 19. The move marks yet another step by Coinbase to reach a more global audience, which it must do to compete with the likes of Binance.
The exchange says that the launch is in line with its global expansion and that it will be fully compliant with regulation. To support this, it has also formed a partnership with the Mitsubishi UFJ Financial Group (MUFG), one of Japan’s largest banks. This could give Coinbase a real boost, as the bank serves over 40 million customers.
Japan is a country whose citizens are extremely keen on the crypto market, as Coinbase rightly notes in saying that it was among the first to embrace crypto. Consequently, the government has stepped in to regulate it in the past few years.
The actions taken by the government have not been draconian by any means, but it has been more strict in recent years. Binance has received a strict warning from the Financial Services Agency (FSA) about operating without a license. The agency is also unsure about making access to cryptocurrencies easier, implying investor protection is a concern.
Coinbase intent on global expansion
Coinbase has said in the past that it will work with regulators to ensure that it meets all legal obligations. This approach has worked so far for the exchange, and it has not faced any serious issues in the United States. Along with a few other exchanges, this approach appears to be much safer, as governments the world over are scrutinizing exchanges.
It has a strict focus on compliance in the U.S., working closely with officials to ensure no violations occur. The exchange will have to play friendly with various governments, and they have made that a clear intention in the past few years. So far, Coinbase’s strategy has been paying off well.
Coinbase has had a very successful 2021. In addition to going public, it has also recorded strong performance numbers in a shareholder letter. It has also managed to strike up deals with the U.S. government. The U.S. Customs and Immigration department purchased forensic tools from the exchange a week ago, besides being awarded a contract by the Secret Service.
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