Leading US-based crypto exchange Coinbase has joined the Japan Virtual Currency Exchange Association (JVCEA) as a second-class member along with two other companies – Digital Asset Markets, and the Tokyo Hash.
Announced on Monday by the JVCEA, the membership of all three companies began on March 1.
JVCEA is Japan’s official self-regulatory body of crypto exchanges formed in 2018 following the $350 million hack of Coincheck, then one of the largest crypto exchanges in the country.
As market regulators are finding it hard to impose regulations on crypto businesses, Japanese exchanges decided to maintain certain standards on their platforms to reduce vulnerabilities, which often result in major attacks.
Currently, the JVCEA has 22 class 1 members, which include major crypto platforms operating in the country like BitFlyer, Raketen Wallet, SBI VC, Coincheck, and Tao Tao.
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With the induction of three new members, the list of class 2 members includes nine names. Coinage, OK Coin, Mercury, Payward Asia, WIREX Japan, and CoinBest are also in this category of members with JVCEA.
The businesses registered as cryptocurrency exchange companies or planning to enter the Japanese market; both can apply to become second class members of the JVCEA.
Meanwhile, exchanges willing to offer services in Japan need to obtain a license from the Financial Services Agency (FSA), the country’s market regulator. The licensing procedure involves meeting a series of standards with regards to system risk management, data security, segregation of customer accounts, KYC requirements, and user protection.
A step towards dominating the global crypto market
The US-headquartered exchange tapped into the Japanese market with an operational license last year. However, there were no significant steps to introduce its services in the country.
The exchange also opened an office in Japan last year, appointing Nao Kitazawa, a former investment banker at Morgan Stanley, as the chief of the local entity, Finance Magnates then reported. Kitazawa will also represent the exchange at the JVCEA.