Coinbase has entered the Japanese
cryptocurrency market after a six-year wait, one of only a
handful of companies allowed to operate in the country.
The move comes at the same time
the country’s regulator, the Japanese Financial
Services Authority (JFSA), is keen to strengthen investor
protection after the record-breaking hack on cryptocurrency
exchange Coincheck in January and Mt. Gox’s
bankruptcy in 2014. Tokyo-based exchange Mt. Gox filed for
bankruptcy after almost 750,000 of its customers bitcoins, and
100,000 of the company’s own, were stolen in an
online attack. Four years later, hackers made off with nearly
$500 million in digital tokens from Coincheck.
George Morris, partner at
Simmons & Simmons, said the Coincheck hack brings into
focus whether regulation can fix problems. "Exchanges that
operate under less regulation have actually not had problems of
this kind," he said.
The JFSA banned private or...