Rakuten, the leading e-commerce company in Japan, has announced the launch of its cryptocurrency exchange. The platform’s launch was announced on the 19th of August and users will be offered crypto trading options through a smartphone app.
The company has been crypto-friendly for a long time, and they are now offering their clients a crypto exchange.
Rakuten aims to make its exchange one of the top crypto exchanges in the world. The smartphone app allows a user to perform transactions for digital asset trading accounts.
The transactions that can be conducted include deposits and withdrawals of the Japanese Yen and cryptocurrencies.
The application will run 24/7, and clients will be able to trade Ethereum (ETH), Bitcoin (BTC) and Bitcoin Cash (BCH).
Features of the wallet
The application provided by Rakuten comes with a cold wallet for user funds. The e-commerce firm has stated that there are no fees required for the opening or managing of one’s account.
The buying and selling of crypto assets or depositing of money will also have no fees attached.
The wallet will use offline storage to keep a holder’s assets safe, and the security of these assets is not placed in the hands of a user alone.
Application for Rakuten wallet
Clients who currently have an account with Rakuten Bank need to enter the required information on an online application form, and they will easily get their Rakuten Wallet.
Other applicants will need to open a Rakuten bank account through which the exchange will get the KYC information they need.
Japan is generally crypto-friendly, and it is one of the industry leaders across the world. The country had strict KYC and AML laws which are enforced by the country’s Financial Services Agency (FSA).
The strict KYC rules which will apply to the Rakuten Wallet May be discouraging for crypto users who place great importance on privacy.
A lot of questions need to be answered before one can open an account with Rakuten bank, and these can be off-putting if you are big on privacy.
Some of the information that is required includes details about the work one does, the individual’s income, and the reasons for which they are opening the account.
This information may be seen as intrusive by some traders, mainly because there are other trading platforms such as local.bitcoin.com where all a potential trader needs is an email address, and they are registered on the trading platform.
Bringing cryptocurrency to e-commerce platforms
Rakuten has been engaging with cryptocurrency for years now. The firm launched the Rakuten Blockchain Lab in 2016 and in 2014, they had invested in Bitnet, a crypto payments software firm.
Launching their crypto exchange is a reflection of how Rakuten’s policies towards cryptocurrency continue to grow.
Other e-commerce companies in Japan and across the world have plans to move into the crypto arena.
Amazon is looking into Merkle Tree solutions but the applications for which they are considering the solutions are yet to be specified. Amazon does not accept crypto payments at the moment.