Coinbase get a license to work in Japan in 2019.

[Paha87]

Senior Executive Director Coinbase I am sure that next year the crypto currency exchange will receive a license for the exchange of cryptocurrencies in Japan, even if the regulatory authorities will strengthen control.

Mike Lempres, Coinbase's chief policy officer, said that "the licensing process is going well," and the interaction with the financial services Agency (FSA) has been successful, Nikkei Asian Review reports. He added that the company " aims to do this (get a license) and definitely it (license) will be in 2019."

The company announced its intention to enter the Japanese market in 2016 and appointed former Morgan Stanley Japan employee Nao Kitazawa as head of the local office in June this year.

As reported last month, Lempres moved from his previous position as the exchange's General counsel and is now working on government cases. He said that security is currently the main concern of the FSA, which regulates Japan's financial markets, after two hacks of major crypto-exchanges that occurred in the country this year: Coincheck in January and Zaif in September.

The FSA has not yet issued a single license for cryptocurrency exchange this year, despite the fact that it has accepted 16 applications. Meanwhile, more than 160 firms, including public companies, are planning to apply for such a license in Japan.

However, Lempres argues that the regulator's strengthened stance will indeed work in favor of Coinbase, as the exchange keeps 99 percent of its funds offline in cold wallets that are not connected to the Internet, making a cyber attack much less likely.

"The Japanese government is more focused on security, "Lempres said, adding,"it's good for us." Expressing an opinion about the possible difficulties Lempres noticed:

The main problem now is whether the FSA will require Coinbase to duplicate its system used in the US and do business separately in Japan. This approach will help the FSA monitor transactions, but can increase the likelihood of hacking.

"We have everything to protect our warehouse in the United States. It would be difficult for us to duplicate what we are doing in the US today in Japan and other countries," the head of the Japanese crypto - exchange office summed up.

Link to the source of information (Russian) - https://altstake.io/news/coinbase-poluchit-licenziyu-na-rabotu-v-yaponii-v-2019-godu