Coinsquare, a premier Canadian cryptocurrency exchange, has just announced plans to make expansions into Japan, with this move being made in collaboration with a global blockchain firm.
To make this foray into the Asian market a success, Coinsquare is joining hands with DLTa21 in a strategic partnership, which will see the two engage in collaborative efforts to ensure all goes well. For the uninitiated, DLTa21 is a “global blockchain investment bank” that has offices around the world, including in Canada and Japan.
DLTa21’s expertise in the Japanese and worldwide markets will aid Coinsquare’s aspirations to open a centralized cryptocurrency exchange based in Japan. The Canadian exchange will offer infrastructure for the proposed exchange, while DLTa21 will work with Japanese regulators to ensure the new exchange will be legitimate in the eyes of the law.
Cole Diamond, CEO of Coinsquare, gave a statement complimenting the announcement. Diamond said:
Working with a world-leading investment firm like DLTA 21 to bring a safe, secure, easy digital currency buying and trading experience to Japan is a thrilling next step in Coinsquare’s mission.
Japanese Regulatory Worries
Japan has long been held as a Bitcoin ‘capital’ if you will, hosting many great cryptocurrency experts, innovators and most importantly, investors. However, due to exchange security breaches, like the Mt.Gox and CoinCheck hacks, lawmakers have begun lay heavy hands on the exchanges based on Japan.
The Japanese Financial Services Agency (FSA) recently announced a series of rules, namely the ban of privacy-based cryptocurrencies trading, with this rule affecting the Monero, ZCash, and Dash cryptocurrencies.
The FSA also imposed new KYC/AML requirements and a mandatory need for cold wallet solutions, ensuring that all consumer funds are kept in control of an exchange. The latter rule was deemed necessary after the Tokyo-based CoinCheck exchange lost over $500 million in NEM tokens due to wallet mismanagement. It was revealed that CoinCheck was using internet-accesible hot wallets, allowing for malicious actors to remotely access the over $500 million in funds.
Coinsquare’s Japanese exchange will be suspect to the regulatory requirements as well, as DLTa21 will be working around the clock to receive regulatory approval for the Coinsquare/DLTa21 exchange. Despite harsh regulation, Coinsquare’s CEO expects for this move into Japan to be a sucess, adding that “Japan is a unique market and we’re looking forward to offering our platform’s capabilities to the Japanese market.”
Coinsquare To Go Public With September IPO
This expansion plan comes amidst Coinsquare’s efforts to take the company to a public stage, applying to offer its shares on Canada’s foremost stock exchange. However, Coinsquare noted that it plans to hold an initial public offering (IPO) prior to the Toronto Stock Exchange listing, hoping to raise upwards of $120 million in funds.
The firm pointed out that the capital raised through the IPO and sale of shares would be used to further expansion into new markets, as Diamond pointed out that the U.S. and U.K. markets are currently on Coinsquare’s radar.