U.S. cryptocurrency exchange Coinbase is forming a partnership with one of Japan's largest banks to launch Coinbase Japan as part of a larger effort to expand worldwide.
Mitsubishi UFJ Financial Group (MUFG), a bank with more than 40 million Japanese customers, will provide "MUFG Quick Deposit" for Coinbase's local users, according to a blog post on Wednesday,
The move into Japan follows a green light from the country's financial regulators, who have looked sternly at the crypto industry in recent years.
The move follows the Nasdaq-listed exchange's subsidiary registering with the Financial Services Agency (FSA), the country’s financial watchdog, in June. Coinbase said its partnership with the bank was a bid to become the country's "most trusted exchange" that is "fully compliant."
Following the hacks, the FSA and self-regulatory rules promoted by the Japan Virtual Currency Exchange Association have only increased in scope, scrutiny and intensity.
Some crypto exchanges such as Kraken initially left the country in 2018, citing rising costs as a result of red tape. The exchange has since returned to the jurisdiction as of September 2020 following licensure to its Japanese subsidiary, Payward Asia Ltd.
UPDATE (August 24, 2021, 1:15 UTC): Adds information on Kraken's return to Japan via its subsidiary Payward Asia Ltd.
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