Financial Services Update
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The US cryptocurrency exchange Coinbase has reached an agreement with Mitsubishi UFJ Financial Group, betting that the Japanese bank’s large customer base will help it gain a foothold in one of the global digital asset trading centers.
Within a few hours of Coinbase Announce cooperationHowever, when the Japanese exchange Liquid confirmed that efforts to emphasize the stability and security of encrypted transactions were shaken It was hacked, Lost the undisclosed value of virtual assets estimated by some experts Up to 80 million U.S. dollars. It is after last week’s 600 million dollars Crypto robbery In Poly Networks.
According to the terms of the transaction, the 34 million domestic customers of Mitsubishi UFJ Financial Group will exclusively use Coinbase’s services through their existing bank accounts. Access rights will enable them to deposit and withdraw bitcoin, ether and other leading cryptocurrencies, which may transform a part of MUFG’s elderly customer base into speculative investment areas that they would not otherwise bother to make.
Currently, Coinbase’s services are only available to MUFG customers, but the Japanese bank said that if it succeeds, Coinbase may extend the arrangement to customers of other banks.
Since Mitsubishi UFJ Bank became an investor in Coinbase five years ago, the two parties have been discussing this partnership, which pushed the American group into the already fierce competition between Japan and Japan. 31 officially licensed cryptocurrency exchanges.
Although Coinbase announced the partnership on its website, Mitsubishi UFJ Financial Group did not officially disclose the transaction, nor did it issue an official statement on the matter. A person familiar with the situation at MUFG described the cryptocurrency issue in Japan as “sensitive.”
Coinbase’s Japanese subsidiary obtained a license to operate in the world’s third largest economy in June, and obtained one of the coveted licenses issued by the Financial Services Authority. In April 2017, Japan became the first government to recognize Bitcoin as a legal payment method, which surprised many people. Later that year, the FSA officially recognized 11 companies as cryptocurrency exchange operators, breaking new ground once again.
The driving force behind FSA’s unexpectedly being at the forefront of global crypto regulation is its determination to avoid a repeat of the Mt Gox incident. The Tokyo-based cryptocurrency exchange processed two-thirds of all Bitcoin transactions before its demise.The company went bankrupt Year 2014 850,000 bitcoins owned by customers and companies disappeared after disappearance, and experts later determined that it was theft.
Although the FSA imposed stricter standards on the licensing of the first 11 exchanges and led to the continued prosperity of cryptocurrency trading in Japan, it protected investors from regulators after one of the licensed exchanges, Coincheck, was raided. The confidence in ability was shaken in a virtual robbery of theft in 2018 XEM token worth 500 million USD.