An executive from the leading U.S. based cryptocurrency exchange Coinbase has made positive remarks about the country’s toughened stance towards the crypto industry, as it awaits its Japanese operating license.
Coinbase chief policy officer Mike Lempres commented that talks for obtaining the license are "going well" with the country’s top financial watchdog, as per an interview with financial newspaper Nikkei Asian Review published on Oct. 10. He further added that the regulator’s focus on security is good for them.
Moreover, Japan’s Financial Services Authority (FSA), has intensified its scrutiny of crypto exchanges, as per previous reports. This step is taken in the wake of January’s industry-record breaking $532 million hack of domestic crypto exchange Coincheck.
The regulator has just recently announced plans to apply yet more rigorous oversight of applications from exchanges waiting to receive an official license. As per expert estimations, around 160 are reported to presently be awaiting a decision.
Lempres is today quoted mentioning that the Japanese government is more focused on security, in the crypto space. Moreover, the CPO emphasized that the exchange is firmly set on getting the regulator’s green light.
However, Lempres directed to an important question still to be resolved in its application, videlicet whether the FSA will need Coinbase’s system to be operated in Japan. He further commented that such a condition might significantly raise security risks He stated that they have everything built to protect their storage in the U.S. and are far away from the possibility of a hack. According to him, it would be hard for them to duplicate what they do in the U.S. today in Japan and other countries.
Coinbase first divulged its plans of entering the Japanese crypto market in the month of June, as per previous reports. At that time, it stated that it hoped to receive a license within a duration of one year.
Since the amendment of Japan’s Payment Services Act in the month of April last year, a license has been mandatory for all crypto exchanges operating within the country. On a continuous basis, the FSA has continued to ratchet up requirements for applicants.
The regulator divulged that it would fortify the process of risk screening for exchanges, earlier this month. He stated that it had increased the number of questions asked when screening applications to about 400 items. It is to be noted that it is a fourfold increase from the previous number.