Payward Asia Inc., a Japanese subsidiary of Kraken, has completed its registration as a crypto asset exchange service provider under the Payment Services Act, allowing it to legally operate in the Japanese market.
The subsidiary will be able to provide Kraken’s advanced services to the crypto community in Japan. In addition, the product lineup includes spot trades for both crypto-to-crypto and fiat-to-crypto (Japanese yen) with five major crypto assets.
Supported cryptocurrency assets include Bitcoin (CBT), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC). The service launch has been planned for mid-September and the exact date is yet to be published.
However, all clients who used Kraken services through Payward Japan K.K are required to open a new account with Payward Asia Inc. so as to access the services in Japan. They will need to go through the same account opening process as others.
In its blog post, Kraken announced that:
There will be no account transfer function provided as the services are different from the past.
Kraken announced that the exchange is now set to resume services after seizing its operations in April 2018. This move to stop operations came after Japanese crypto exchange Coincheck was hacked in that same year. Coincheck was targeted by hackers who got away with 400 million in NEM cryptocurrency tokens from users’ digital wallets.
As a result, Japan’s Financial Services Agency discovered issues with exchanges’ customer protection and anti-money laundering procedures. The Japanese government then decided to conduct inspections on both licensed and unlicensed crypto exchanges.
Evaluating their risk management, cryptocurrency storage methods, and self-reporting of security protocols were carried out. Some crypto exchanges were issued with administrative punishment notices. Meanwhile, others were suspended from doing business. All exchanges had to abide with the Japanese cryptocurrency regulation.
Kraken is the world’s largest global digital asset exchange based on euro volume and liquidity. The exchange supports trading of more than 30 digital assets and 7 different fiat currencies.