US cryptocurrency exchange Coinbase is partnering with one of Japan’s largest banks to launch Coinbase Japan as part of a larger effort to expand worldwide. The move into Japan follows a greenlight from the country’s financial regulators, who have looked sternly at the crypto industry in recent years.
According to a blog post on Wednesday, Mitsubishi UFJ Financial Group (MUFG), a bank with over 40 million Japanese customers, will provide “MUFG Quick Deposit” for Coinbase’s local users.
No further information on the deposit product was provided.
Japanese customers using Coinbase will have the option to buy bitcoin, ether, stellar, litecoin, and bitcoin cash, with other listings to follow, CoinDesk previously reported. An exact date of the Coinbase Japan launch has not yet been given.
The move follows the Nasdaq-listed exchange’s subsidiary registering with the Financial Services Agency (FSA), the country’s financial watchdog, on June 18. Coinbase said its partnership with the bank was a bid to become the country’s “most trusted exchange” that is “fully compliant.”
Japan’s financial regulatory regime as it relates to the crypto industry is strict. The hardline from regulators stems from the fallout of a number of exchange hacks that have occurred within the country over the years, including Coincheck in 2017.
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. Others, such as Kraken, left the country in 2018 citing rising costs as a result of red tape.