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Binance sees a big chance in Japan’s stablecoin market, which could be worth up to ¥5 trillion (around $34 billion).
Despite its ongoing legal dispute with the U.S. Securities and Exchange Commission, Binance is looking for new chances in foreign markets. They plan to introduce stablecoins tied to USD, EUR, and Japanese Yen in Japan’s growing crypto sector by 2024.
Binance is partnering with Mitsubishi UFJ Financial Group’s trust banking division for this project. MUFG’s general manager, Takeshi Chino, mentioned that both companies are collaborating on this issuance.
In June, Japan passed a law that allows licensed companies to create stablecoins. This has prompted firms like Orix Corp. to consider launching these digital tokens, which offer advantages like faster money transfers and settlements. MUFG has also been in talks with different groups about using its blockchain platform, Progmat, to make stablecoins tied to foreign currencies.
Tatsuya Saito, MUFG’s vice president of product, believes that Japan’s stablecoin market could be worth up to ¥5 trillion (around $34 billion), which is about a quarter of the estimated global market size.
To make this happen, Binance needs to get a license in Japan as a provider of electronic settlement methods. Once that’s done, users can use stablecoins for crypto trading and potentially for payment services, according to Chino.
Binance Expands Abroad
Binance has been dealing with regulatory challenges worldwide, including the US, Australia, and the UK. Despite this, the company is actively talking to regulators to clarify crypto rules. Recently, Binance reopened its Belgium operations after a 3-month regulatory pause.
There were reports suggesting that Binance might delist stablecoins in Europe by June 2024 due to the Markets in Crypto Assets (MiCA) rules coming into effect by December 2024.
However, Binance’s CEO, Changpeng Zhao (CZ), clarified that there was a misunderstanding in statements made by Binance’s French legal director, Marina Parthuisot. CZ mentioned that they already have partners in Europe and plan to launch a compliant stablecoin.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
