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Mercari, one of Japan's leading e-commerce platforms, has declared its intention to accept bitcoin payments starting from June of this year. The decision, which was reported by Japanese financial media outlet Nikkei on Friday, outlines that the processing of bitcoin payments will be managed through Mercari's Tokyo-based crypto subsidiary, Melcoin.Photo by Dmytro Demidko on UnsplashSeamless BTC conversionIt's noteworthy that Melcoin will convert all BTC payments into yen, ensuring vendors receive fiat currency despite the buyer's choice of bitcoin for payment. While the company won't display prices in bitcoin, listing items for sale in fiat yen, customers will have the option to select BTC as a payment method during the purchase process on the platform. In recent months, Mercari has introduced various crypto-related products, including the Mercari bitcoin crypto trading service. This service allows users to buy and sell bitcoin using the proceeds from their sales on the platform. The integration of a loyalty points system further enhances the crypto trading experience, enabling Mercari users to exchange their points for bitcoin. Remarkably, Mercari announced that its bitcoin trading service surpassed the 1 million user milestone in October, just seven months after its launch. At the time of the launch of the trading service, the company outlined that it would “make bitcoin more accessible to people who have never tried crypto trading before.” Notably, around 80% of the crypto users on Mercari had no prior experience with crypto-asset trading in June of the previous year. Expanding its crypto-related offering to include bitcoin payments unleashes much more potential relative to crypto adoption. 22 million monthly usersEstablished in 2013, Mercari has evolved into Japan's largest community marketplace platform, boasting 22 million monthly users as of July 2023. It’s a flea market application, making it a consumer-to-consumer platform that could play a significant role in bringing about bitcoin adoption in Japan among ordinary people. The company has also expanded its footprint internationally, with a particular focus on Europe. Market observers have labeled Mercari's crypto service, along with a competitor operated by Rakuten, as a potential "gateway" for bitcoin and crypto investors and traders. Rakuten, another major Japanese e-commerce platform deeply involved in the crypto space for an extended period, operates the Rakuten Wallet crypto trading service. Like Mercari, Rakuten has integrated its loyalty points program with its crypto arm, allowing users to trade their points for crypto-assets. Rakuten had also emerged last year among a shortlist of Asian companies expressing an interest in purchasing failed crypto exchange FTX. A recent survey highlighted the growing influence of these e-commerce giants in the crypto space. Japanese individuals who entered the coin trading scene towards the end of 2022 overwhelmingly favored either Mercari's bitcoin trading app (24.7%) or Rakuten's Rakuten Wallet platform (24.2%). This revelation dealt a blow to traditional crypto exchanges, with bitFlyer, the long-standing market leader, securing the third position with a share of 11.3%. This move contributes towards a more progressive crypto environment in Japan, where lawmakers recently indicated a willingness to consider making tax rules more accommodative of the crypto sector.

South Korea’s neobank Kbank has partnered with BPMG, a domestic Web3 developer, to pursue stablecoin initiatives abroad, the Electronic Times reported. The companies are preparing proof-of-concept (POC) trials with firms in Thailand and Dubai as part of a broader push to participate in global financial infrastructure. Following a recent agreement with Kbank, BPMG has begun collaborating with a Thai company on a stablecoin project and is working with an investor in the United Arab Emirates (UAE) on the issuance and operation of stablecoins. Kbank plans to leverage BPMG’s blockchain technology to develop stablecoin business models for remittances, currency exchange and payments, and to support the build-out of related systems. The bank is focusing first on Asia and the Middle East.Photo by Shubham Dhage on UnsplashReducing intermediaries and automating regulatory complianceAnother priority is cutting intermediaries in cross-border transfers to speed up remittances and reduce costs via distributed ledger technology. Drawing on BPMG’s patents in AI and blockchain, Kbank is also developing a tool to automate regulatory analysis across jurisdictions so it can tailor services to local rules. As digital transformation accelerates, stablecoins are gaining traction as a payment method for their low volatility and ability to enable real-time cross-border transactions. In April, Kbank joined the Pax Project, a stablecoin initiative backed by Japan’s three major banks—Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho. Through the project, Kbank is participating in trials for real-time transfers and settlement between South Korea and Japan. The bank has also formed a digital asset task force to advance the commercialization of stablecoin solutions. A Kbank official said combining blockchain with finance can deliver faster, more efficient global services and that the BPMG partnership is expected to demonstrate the practical utility of stablecoins, paving the way for integration into both domestic and international offerings. IPO timing hinges on Upbit renewalThe stablecoin push comes as Kbank is widely expected to submit a preliminary initial public offering (IPO) filing as early as this month, with a listing anticipated in October. A key variable, according to market watchers, is whether Kbank renews its contract with Upbit, South Korea’s largest cryptocurrency exchange, to provide real-name bank accounts—a regulatory requirement for fiat-to-crypto platforms. Kbank has been Upbit’s banking partner for five years, and deposits from the exchange account for roughly 20% of the bank’s total. Kbank is also seeing rising corporate activity around digital assets. As of Aug. 18, the bank had more than 100 corporate accounts dedicated to crypto trading—over double the 49 recorded at the end of last year—momentum widely attributed to its partnership with Upbit. Since launching corporate-focused services in late 2023, Kbank has provided real-name accounts to entities including government bodies, non-profits, and local municipalities. The uptick follows the financial regulator’s earlier decision to allow non-profits and trading platforms to sell crypto holdings, with implementation beginning in June.

Bitget Adopts Stricter KYC Measures in Line with Global RegulationsBitget, the cryptocurrency derivatives exchange registered in Seychelles, has announced a significant update to its Know Your Customer (KYC) requirements.Announced via a blog post published to its website on Sunday, the move is aimed at enhancing user security and ensuring compliance with evolving global regulatory guidelines, joining other exchanges like KuCoin and OKX in tightening its KYC policies.Photo by Brett Jordan on UnsplashChanges taking effect in SeptemberStarting from September 1, Bitget will enforce level 1 KYC verification for all new users accessing its services, including depositing and trading digital assets. Existing users are also required to complete this level 1 verification by October 1. After this deadline, users who have not completed the verification will have limited functionality on the Bitget platform, including only being able to withdraw, cancel orders, redeem subscriptions, and close positions. They will be unable to initiate new trading orders.The KYC process involves verifying users’ identities and is commonly used by regulated entities to assess risk. Bitget emphasizes the importance of this verification process to maintain a secure trading environment and comply with regulatory recommendations.Following an industry trendBitget’s decision to reinforce its KYC standards aligns with the broader trend observed across the cryptocurrency exchange landscape. In the wake of increased regulatory scrutiny earlier this year, many exchanges have taken steps to strengthen their verification procedures. KuCoin, for instance, introduced mandatory identity checks in July to align with global Anti-Money Laundering (AML) regulations. Similarly, OKX is implementing a KYC process for identity verification, with a deadline also set for September.As regulatory frameworks evolve worldwide, cryptocurrency exchanges are under increased pressure to align with stricter standards. Bitget’s decision to enhance its KYC measures signifies its intention to maintain a secure and compliant trading environment for users, and to appease global regulators. This announcement follows a series of proactive steps taken by the exchange this year, indicating its dedication to navigating the changing regulatory landscape and promoting user security.Bitget has made headlines throughout the year for various developments, including the inclusion of Liquid Staking Derivatives (LSDs) as a margin option for crypto futures customers. As recently as last week, the platform garnered attention within the crypto sector, having gotten itself embroiled in a legal dispute with crypto influencer Evan Luthra.Earlier this year the platform acquired the Singapore-based BitKeep cross-chain wallet business. It’s believed that acquisition has assisted the company in achieving further growth in 2023, with 20 million users.Bitget invested $10 million in Fetch.ai, an artificial intelligence platform, and launched a referral program to expand its user base. Moreover, Bitget’s collaboration with comedian Adam Devine for a promotional campaign underscored its innovative marketing strategies.Bitget’s adoption of stricter KYC measures reflects the broader trend of exchanges bolstering their verification procedures in response to global regulatory changes. As regulatory expectations continue to evolve, exchanges worldwide are revisiting their policies to ensure a secure and trustworthy trading environment for their users.