Coinbase announced a launch in Japan, according to a blog post published on Aug. 19. The move is yet another step for Coinbase to reach the more global audience it needs to compete with exchanges like Binance.
The exchange says the launch is in line with its global expansion and that it will be fully compliant with regulatory requirements. In support of this, it has also partnered with 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 interested in the cryptocurrency market, as rightly noted by Coinbase, which was one of the first to adopt cryptocurrency. In this regard, the government in the last few years has taken up its regulation.
The measures taken by the government were by no means draconian, but in recent years they have become more stringent. Binance has received a stern warning from the Financial Services Agency (FSA) to operate without a license. The agency is also unsure if it is making it easier to access cryptocurrencies, implying that investor protection is a concern.
Coinbase intends to expand globally
Coinbase has stated in the past that it will work with regulators to ensure that all legal obligations are met. This approach has so far worked for the exchange, and it has not faced any major problems in the United States. Along with several other exchanges, this approach appears to be much safer as governments around the world scrutinize exchanges.
In the United States, the exchange strictly enforces the law, working closely with officials to ensure that there is no violation. The exchange will have to play on friendly relations with various governments, and in the last few years they have made this intention clear. So far, Coinbase's strategy has paid off.
Coinbase had a very successful 2021. In addition to going public, she also presented the strong performance in her letter to shareholders. She also managed to strike deals with the US government. A week ago, the US Customs and Immigration Office acquired forensic tools from the exchange and also signed a contract with the Secret Service.