US-based cryptocurrency platform Coinbase has become a second-class member of the Japan Virtual Currency Exchange Association (JVCEA), the Japanese regulatory body responsible for cryptocurrency exchanges in Japan.
On Monday, the JVCEA posted local firm Tokyo Hash and Digital Asset Markets Inc. have also joined Coinbase as second-class members.
In 2016, Coinbase received a $10.5 million invest from multiple investors, including Mitsubishi UFJ Capital, and Bank of Tokyo Mitsubishi UFJ.
As a second-class member, Coinbase is now categorized as firms “applying for or planning to apply for virtual currency exchange registration as prescribed in Article 63–3 of the Payment Services Act,” according to the JVCEA.
The goal of the JVCEA is to confirm cryptocurrency exchanges in Japan conduct “sound” business.
In January 2019, Japanese-based exchange Coincheck suffered multiple hacks, amounting to a total loss of $420 million.
Coinbase has not made an official announcement regarding their plans in Japan.
The firm does have a page dedicated to its planned local service. However, Japan is not included on its list at this time.