OkCoin Japan announced on Monday that it registered itself with the Kanto Local Finance Bureau as a virtual currency exchange.
With this, the Japanese subsidiary of the OK Group can now legally offer crypto exchange services in the East Asian country under its Payments Services Act.
Japan mandated licensing of all digital asset exchanges operating within its borders following the security breach of Coincheck, which resulted in the theft of $535 million in cryptocurrency.
The incident also pushed the exchanges to form a self-regulatory body called the Japan Virtual Currency Exchange Association (JVCEA), which worked hand-in-hand with the Financial Services Agency (FSA) in drafting the country’s crypto regulations.
Serving both retail and institutional traders
Though the exchange did not specify any launch date for its Japanese operation, it mentioned that the services would be started “soon” for both “individual and corporate customers in Japan.”
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The press release detailed that the Japanese subsidiary had already built a “secure, stable, and robust service environment” for offering digital currency exchange services. The platform is also touting its know-you-customer (KYC) and “dynamic” risk profiling capabilities.
“OKCoin Japan also has developed and implemented proprietary AML/CFT technologies such as automated transaction filtering and monitoring systems as part of its effort to combat illicit activities in the crypto industry,” the exchange noted.
Though Japan is one of the largest crypto markets, the presence of strict licensing keeps even the major global exchanges away from the country.
Finance Magnates earlier reported the addition of Coinbase as a class-two member to the JVCEA, signaling the US giant’s efforts to launch services in Japan.