A recent report revealed that Binance, the world’s largest crypto exchange in market cap, is set to partner with MUFJ, a Japanese bank, to issue stablecoins pegged to three different traditional currencies, including euro, USD, and Japanese yen. In other news, Binance celebrates its reentry into the Belgian crypto market.
As the cryptocurrency industry continues to gain massive adoption worldwide, many countries’ financial agencies continue to struggle to set up standard regulatory frameworks to tame the evolving industry. In addition, regulators are clamping down on crypto startups, and to avoid regulatory issues, many prominent crypto firms are improving their law compliance behavior. In Asia, for instance, regulators are setting new rules to regulate the stablecoin sector.
In the latest development, the Binance exchange, in a bid to take advantage of the increasing buzz about stablecoins in the region, has partnered with Mitsubishi UFJ Financial Group in Japan to create a stablecoin. According to the report, the proposed stablecoin would be issued in three different traditional currencies, which include the United States Dollars, Euros, and Japanese yen.
Furthermore, the two partners plan to begin issuing the proposed stablecoins in 2024 under the oversight of the “Progma Coin” platform, which was created as the legal platform where stablecoins are mandated to be issued in alignment with the recently amended ‘Payments Services Act’. The updated act was enforced in June after they acquired all vital licenses for wire payment services and other forms of trading.
Binance Re-Enters Belgian Crypto Market
In addition, the report revealed that the Binance exchange, which had just reentered the Japanese crypto market in August, is set to lead the collaboration, leveraging the expertise of Mitsubishi UFJ Trust in issuance and maintenance to promote the adoption of stablecoins to the international market, thereby facilitating the global adoption of the Web3 ecosystem in Asia.
In a recent interview, the spokesperson of Binance Japan, Takeshi Chino, pointed out that the Binance exchange is an international leader in stablecoin liquidity and crypto transactions. He added that the firm will start offering digital assets trading executed with stablecoins as soon as it can in the Japanese region.
Meanwhile, the report showed that Binance did not plan to reenter the Japanese market alone but has also rejoined the cryptocurrency market in Belgium.
Earlier today, the official page of Binance Belgium issued a press release stating that the firm is set to renter the cryptocurrency market of Belgium in order to offer Belgian residents its crypto-assets and crypto-services. According to the report, Binance had earlier announced the temporary suspension of its operation in the region in June due to the fallout it had with the financial services and market authority of Belgium.
However, the giant crypto exchange is now back in the Belgian market. The Binance representative added in his address that entities registering accounts with the firm are obligated to comply with the new rules and regulations of the firm, which aligns with the country’s laws.
Binance Faces Challenges From Regulators
Binance exchange currently offers about 34 crypto assets in the Japanese market, which is reportedly the most considerable number of tokens listed on a single exchange in the country.
Crypro enthusiasts considered the latest development as a good turn of events for Binance exchange after the numerous challenges and rejections it is currently facing in multiple European countries. According to the report, Binance had been pressured to pull out of the UK, Netherlands, Cyprus, and Germany markets in 2023 alone, due to compliance issues with different jurisdictions’ regulations.
Even though the exchange is witnessing massive expansion across the globe, it is still entangled in lawsuits with regulators in Europe and the US. Following its court case with the United States Securities Exchanges, the CEO of Binance, Changpeng Zhao, has filed a dismissal motion for its allegations.
Some financial experts commented that the partnership between the two financial entities could facilitate the growth of the crypto industry in Asia via stablecoins. In addition, stablecoins are more approachable for those wary of cryptocurrency due to its price volatility. This makes stablecoins more suitable for promoting web3 innovation in Asia.
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