Mitsubishi UFJ is the new Coinbase banking partner in Japan

Mitsubishi UFJ is the new Coinbase banking partner in Japan

Cryptocurrency
March 6, 2022 by Diana Ambolis
1658
Mitsubishi UFJ Financial Group’s MUFG Quick Deposit offering will give Coinbase banking Japanese customers access to the exchange. Coinbase is partnering with one of Japan’s top banks to create Coinbase banking Japan as part of a bigger global expansion plan. Mitsubishi UFJ Financial Group (MUFG), a bank with over 40 million Japanese customers, will offer
Mitsubishi UFJ is the new Coinbase banking partner in Japan

Mitsubishi UFJ Financial Group’s MUFG Quick Deposit offering will give Coinbase banking Japanese customers access to the exchange.

Coinbase is partnering with one of Japan’s top banks to create Coinbase banking Japan as part of a bigger global expansion plan.

Mitsubishi UFJ Financial Group (MUFG), a bank with over 40 million Japanese customers, will offer “MUFG Quick Deposit” to Coinbase’s local users.

The entry into Japan comes after approval from the country’s banking regulators, who have been harshly critical of the cryptocurrency business in recent years.

Japanese clients could buy bitcoin (BTC, -8.71 percent), ethereum (ETH, -12.19 percent), stellar (XLM, -11.41 percent), litecoin (LTC, -11.81 percent), and bitcoin cash (BCH, -10.57 percent) on Coinbase, with more to come. The actual date of Coinbase Japan’s launch has yet to be announced.

The move comes after the Nasdaq-listed exchange’s subsidiary registered with the country’s financial authority, the Financial Services Agency (FSA), in June. Coinbase’s cooperation with the bank is part of a more significant effort to become the country’s “most trusted exchange” that is “completely compliant,” according to the company.

The crypto rules in Japan are rather severe. The regulators’ tough stance arises from the repercussions of a series of exchange attacks in the country, including a Coincheck hack in 2017.

The FSA and the Japan Virtual Currency Exchange Association’s self-regulatory policies have only grown in scope, scrutiny, and intensity following the hacking.

Also, read – Japan Bank starts CBDC Trial of Digital Yen

Some cryptocurrency exchanges, such as Kraken, left the nation in 2018, citing growing expenses due to red tape. Following the license of its Japanese subsidiary, Payward Asia Ltd, the exchange has returned to the jurisdiction as of September 2020.

Mitsubishi UFJ Financial Group has completed its blockchain payment network plan before Coinbase banking partnership

Mitsubishi UFJ Financial Group (MUFG) has announced that its high-speed blockchain payment network initiative, GO-NET Japan, will be suspended and shut down.

The COVID-19 pandemic caused a slow increase in the number of transactions, making it difficult to expand the business at the same rate as expected, MUFG stated on Wednesday.

In addition, the network struggled to find a place in the internet of things (IoT) sector.

“As a result,” MUFG added, “the firm is not likely to attain profitability in an acceptable time frame.” “GO-NET Japan will cease operations and begin liquidation processes, after which GO-NET Japan will resume operations.”

In November 2020, the Global Open Network (GO-NET) partnership with Cambridge, Massachusetts-based tech firm Akamai was launched to provide more affordable and efficient financial services. The infrastructure, according to GO-NET, can handle 100,000 transactions per second and maybe scaled up to 10 million per second for tiny payments.

This revelation does not mean MUFG’s involvement in the blockchain and digital currency businesses is over. Its trust banking division revealed plans earlier this month to develop a yen-pegged stablecoin as a means of payment to facilitate quick settlement of securities transactions.