Coinbase launches in Japan, an important market for the industry
This Thursday, August 19, the American exchange platform Coinbase announced to launch on the Japanese market. Rightly recalling that it is one of the first countries to have adopted digital assets and also one of the first in terms of volumes traded, Japan remains a somewhat separate market.
The country of the Rising Sun indeed has many local exchange platforms such as Coincheck, bitFlyer or bitbank. Faced with these well-established local competitors, the giants of the sector have always feared the Japanese market.
It is therefore a major challenge for Coinbase to succeed in attracting a population attached to its Japanese platforms.
For starters, Coinbase will offer the purchase of five of the largest crypto-assets: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM). Others are expected to follow in the near future.
An association with a large Japanese group for Coinbase
To enable Japanese people to buy and sell cryptocurrency, Coinbase has partnered with Mitsubishi UFJ Financial Group Inc (MUFG). Here, we are not talking about the automotive group but the banking subsidiary of the Japanese conglomerate.
MUFG is none other than one of the largest banks in the country. The objective is to give primacy to the 40 million Japanese who have an account with MUFG to use Coinbase, in particular via the Quick Deposit service.
On its blog, the American platform specifies that it aims to be associated with safety and trust, by complying with all local regulations. Confidence is indeed an important factor in Japan, a country with many hacks, the most notorious of which is Mt. Gox.
Coinbase specifies that this launch is only the beginning of its engagement in Japan. The goal of the Delaware platform is to offer the best possible products to its future Japanese customers.
In addition to the addition of new crypto-assets in addition to the initial five, other products will emerge. Coinbase notably cites local versions of its derivatives for traders and Coinbase for Institutions, a service dedicated to institutional clients.
A long-term establishment of Coinbase in Japan
In Japan, Coinbase will be led by Nao Kitazawa, a former banker at Morgan Stanley. Kitazawa announced that the American platform has already hired thirty people and wishes to recruit profiles specialized in product development.
With the announced objectives, Coinbase will seek to appeal to both private and institutional clients, the latter being increasingly interested in the digital asset sector.
It is the institutions that Coinbase wants to attract as a priority since Kitazawa wants to hire people specially assigned to this type of clientele.
In light of a record year in terms of revenue, will Coinbase become a cryptocurrency giant in Japan, where many players have broken their teeth? Start of response in a few months.
👉 On the same topic – Coinbase grossed $ 1.8 billion in revenue in the first quarter of 2021
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About the author: Benjamin Allouch
Lawyer specializing in digital law and personal data. He quickly became interested in bitcoin and blockchain technology, and founded the blog bitcoin-blockchain.fr. He is interested in the emergence of blockchain law and the legal consequences of this technology.
All articles by Benjamin Allouch.