Coinbase Now Second-Class Member of JVCEA

The self-regulatory organization of Japan’s crypto industry, the Japan Virtual Currency Exchange Association, or JVCEA, has made a new announcement today. On the 2nd of March 2020, the JVCEA has included three new companies into their fold, registering them as second-class members.

Coinbase’s International Push

The three that were included were Coinbase, Tokyo Has, and Digital Asset Market, as reported by the JVCEA. An important stipulation is that second-class members within this agency are capable of registering as a crypto exchange company within the country or otherwise register as a business with plans to create one. The main reason due to this is due to the JVCEA being mandated to oversee the crypto industry as a whole, thanks to the Financial Services Agency declaring as much back in 2018

Coinbase officially gained its licensing within Japan in 2019, but very little progress was made thereafter. As it stands now, Coinbase had managed to discover other ways to expand its influence within Japan’s crypto ecosystem. One of the key moves in regards to this is the partnership with the Bank of Tokyo-Mitsubishi UFJ. The partnership allowed Coinbase to increase its efforts of international expansion.

A Brief History

During this time, around mid 2018s, the firm managed to name a CEO for a local subsidiary. Later that year, Coinbase made it clear that the exchange was confident that it would receive an operating license from the FSA. While Coinbase had anticipated that this would occur in 2019, it has only happened now during the early 2020s when it’s come into full effect.

Coinbase had its sights set on expanding its exchange platform into Japanese soil as early as 2016. The main contributor to this desire comes from its investors. The exchange had received a hefty $10.5 million investment from two heavyweights in Japan’s finance sector: Bank of Tokyo-Mitsubishi UFJ, as well as Mitsubishi UFJ Capital.

Correcting The Past

The entire purpose of the JVCEA, is to ensure that the crypto industry within Japan carries out businesses that are of sound moral value. This is guaranteed through the use of local laws. As an official second-class member, These three exchanges can put rules in place for the various exchanges of Japan, as well as impose punishments on those that violate the JVCEA.

The JVCEA itself was founded in a bid to try and combat the rampant lack of confidence in Japan’s crypto industry. This lack of confidence comes primarily from significant hacks in Japan’s exchanges, with the largest net loss being $420 million. The unlucky winner for that loss was the Coincheck exchange.