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Coinbase, a US Bitcoin exchange and wallet operator has signed a strategic partnership with Japan’s largest bank, Bank of Tokyo Mitsubishi UFJ (BTMU), in order to support future expansion to the country and Asia more broadly.
As part of the partnership, BTMU, the bank’s VC arm Mitsubishi UFJ Capital, and Silicon Valley’s Sozo Ventures have invested $11 million in the firm, according to Reuters. Coinbase currently operates in the UK, Europe, the US, Canada, and Singapore.
Japanese investment could help Coinbase get a foothold in the country. International expansion requires investment, and targeting investors in the region will enable Coinbase to tap into its investors’ expertise and knowledge. Having a bank on board could be especially helpful when it comes to dealing with financial regulators, as well.
Japan is trying to rebuild its reputation as a Bitcoin hub. Japan was the site of one of the most famous Bitcoin controversies in 2013 when around 800,000 bitcoins, worth £315 million ($450 million) at the time, were stolen from Bitcoin exchange Mt Gox. Since then, Japan has implemented strict regulatory requirements for virtual currency exchanges. They must now register with the financial regulator, meet Know Your Customer (KYC) requirements, and agree to onsite inspections. Clear regulation is designed to improve trust in digital currencies and attract firms working with digital currencies to the country.
Blockchain technology, which is best known for powering Bitcoin and other cryptocurrencies, is gaining steam among finance firms because of its potential to streamline processes and increase efficiency. The technology could cut costs by up to $20 billion annually by 2022, according to Santander .
That’s because blockchain, which operates as a distributed ledger, has the ability to allow multiple parties […]
