Coinbase has partnered with one of the largest banks in Japan, Mitsubishi UFJ Financial Group (MUFG), with a client base of over 40 million. This initiative is aimed at launching Coinbase Japan, the Japanese arm of the American crypto exchange.
Coinbase has partnered with Japanese bank MUFG, which will be in charge of money transfers.
Coinbase previously registered with the Financial Services Agency (FCA) of Japan.
Coinbase has amassed $ 4 billion to weather the crypto winter should it hit.
With the help of Mitsubishi UFJ Financial Group, Japanese clients will be able to deposit and withdraw money from Coinbase. More details, including the launch date for Coinbase Japan, are not yet available.
“In line with our global strategy, we will strive to be the easiest to use and most trusted exchange in Japan that is fully compliant with local regulations,” the company said in a statement.
That is why we are pleased to announce our partnership with MUFG, one of the largest banks in Japan, serving 40 million Japanese customers. ”
According to the statement, the partnership will provide Japanese clients with access to fiat currencies through MUFG’s fast deposit services. This partnership was concluded following the registration of the Coinbase subsidiary with the Financial Services Agency (FCA) of Japan.
It is worth noting that the regulation of the crypto industry in Japan is quite strict. It began to be toughened after a number of crypto-exchange hacks that happened in the past. The largest hack was the incident with the Coincheck exchange in 2017, as a result of which the company lost more than $ 500 million.
Meanwhile, Coinbase has amassed more than $ 4 billion in cash in preparation for a drop in trading volumes and a corresponding drop in the company’s profits.
With the accumulated funds, the exchange intends to fund its operating activities and costs associated with regulatory obstacles during the crypto winter.
“We want to ensure the possibility of further investment and development of our products even in the event of the onset of crypto winter,” said Coinbase CFO Ales Haas in a conversation with the Wall Street Journal.