The owners of Bitcoin exchange Kraken say that their organization has started its services in Japan to serve the nation’s large number of active traders and finance professionals. In an official announcement the company says that the strength of Kraken’s security and engineering team, as well as its high trade volumes and reputation for compliance will make is a success.
This is going to be tough challenges for the Bitcoin exchange as customers in Japan still remember what happened to them when Mt. Gox collapsed this year. The Bitcoin exchange had then caused severe loss to the investors who had put their faith in it. Some staff members even accused the CEO of the Bitcoin exchange to misappropriate the funds as well.
Kraken understands this and that is why it promises that gaining public trust is a high priority. Talking to media professionals the new managing director of Kraken in Japan, Ayako Miyaguchi, said that the company’s ability to handle larger volumes will be the main drawcard for Japanese users, especially professional traders who may not have experimented with Bitcoin yet.
She further admitted that credibility is going to be a major concern for the company; however, as Kraken has proven history operating from the US is expected to give it confidence when establishing essential relationships with banks and local regulators such as the Financial Services Authority (FSA).
The Decision Was Pending for Around a Year
According to Miyaguchi since businesses are in need of an exchange they can trust and regulators simply want to avoid another Mt Gox-like situation. She realizes that Kraken has a proven history in the US and Europe, so it will not just be saying that it is good; rather, call itself a company with successful track record of being a leading name in the industry.
Miyaguchi who has been instrumental in forming Japan’s new Bitcoin industry group, the Japan Authority of Digital Asset (JADA), met with government representatives on several occasions to develop an idea about the building of the Bitcoin exchange. This was part of the company’s plan to set up shop in the world’s third-largest economy.
Though Kraken had planed earlier this year to start operating in Japan, the Gox debacle forced a postponement. Later on the company realized that Japan’s society simply wasn’t ready at that point, and there was a need to build trust. However, now when it felt that it is right time, there was no way it could have held it up.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
This is going to be tough […]
