Wirex Becomes Type II Member of Japan’s VCEA

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On Augsut 15, Wirex Japan Limited announced that they had officially become a type II member of the Japan Virtual Currency Exchange Association (JVCEA). In addition, the Association for cryptocurrencies in Japan also approved a license application for the firm, making it one of just a few virtual payment platforms that has received the preliminary authorization to be able to do business within the country.

This is a huge step for Wirex, who is looking to offer a complete range of services to customers within the country. By becoming a member of the JVCEA and receiving the license, they have taken the initial steps toward receiving a full exchange license. “It takes ages to complete this stage only, and some companies who have this stage have even been bought by other companies just because of the stage,” explained a spokesman for the company.

Wirex is a personal-finance platform that has merged blockchain technology with traditional finance. They had been seeking membership and licensure because Japan has become a hotbed for cryptocurrency-related services. This is why the government and its regulating agencies have sought to ensure that companies allowed to do business within Japan have met rigorous standards. Wirex stated:

Amid a largely listless response by international authorities, Japan’s Financial Services Agency (FSA) and the JVCEA lead the way in cryptocurrency regulation. The world’s third-largest economy is one of the few developed nations that recognizes the enormous potential of decentralized digital currency and has legislated it accordingly. Cryptocurrency in Japan is no cowboy economy – companies must undergo rigorous and comprehensive due diligence before they are allowed to practice.

To their credit, Wirex recognized early on that if they were going to receive approval, there were hoops they were going to have to jump through. “We welcome the level of due diligence shown by the JVCEA – by adhering to their rules, we ensure that Wirex remains at the forefront of compliance, security and regulatory best practice. The acquisition of type II membership is a proud milestone for Wirex and brings us closer to being fully operational in Japan,” said Wirex co-founder Pavel Matveev.

Wirex now looks to become a type I member. This would establish them as a legal crypto-asset exchange service provider, making them only the 20th company to achieve that status.

Wirex had long sought approval to operate within Japan. As far back as October 2017, the London-based company had been looking to expand operations into the country. This initial approval is the culmination of a long process, but there are still steps to go.