Kraken Relaunch in Japan after Nod from Regulators
Crypto exchange Kraken is relaunching in Japan after a two years hiatus, the U.S cryptocurrency exchange has said in a statement on Oct 22. They also become the first cryptocurrency exchange to organically enter the Japanese market without acquisition.
Kraken Relaunching in Japan
This is seven weeks after its Japanese subsidiary, Payward Asia Ltd, completed the pre-requisite registration process. Thereafter, it was awarded a business permit under Japan’s Payment Services Act.
Part of their success is rooted in their strong partnership with JFSA regulators and banking partners on top of their deep knowledge of the local landscape.
Overly, the exchange said their re-entry is part of their strategic plan to compliantly expand into the APAC region, allowing residents to fund their accounts and trade supported digital assets.
Notably, the cryptocurrency market scene in Japan is active and one of the largest in the world. Estimates place active crypto trading accounts at over two million.
Commenting, David Ripley, the CEO of Kraken, said:
“We’re thrilled to once again be able to offer unparalleled client service and the most secure cryptocurrency trading to Japanese market participants. In today’s challenging economic environment, more people are turning to cryptocurrencies to hedge against volatile markets and use cryptocurrency as a store of value.”
The Role of Regulation in Crypto Expansion
Regulators in Japan are strict. As mandated by the law, they have taken extra steps to protect investors.
In the wake of the CoinCheck hack that saw over $500 million worth of NEM lost, the country regulator sprung into action.
Some of the instituted changes included new registration of cryptocurrency exchanges planning to enter the Japanese scene.
Besides, exchanges were required to distinct their operational funds from clients while enforcing Know-Your-Customer (KYC) laws.
Though stringent, regulatory certainty and clarity are what cryptocurrency firms like exchanges and blockchain projects require.
As reported by BTCManager, the CEO of Ripple, Brad Garlinghouse, singled out Japan’s regulatory environment as suitable.
Because of the absence of defining regulations in the United States, Ripple may likely move to Japan, Singapore, the U.K, Switzerland, or the United Arab Emirates, where applicable laws are clearer.