Although crypto exchange Binance continues its legal battle with the U.S. Securities and Exchange Commission, it is seeking new opportunities in the overseas market. The latest development shows that Binance is gearing up to launch stablecoins denominated in USD, EUR, and Japanese Yen, by 2024, in Japan’s booming crypto industry.
For this project, Binance has joined hands with the Mitsubishi UFJ Financial Group’s trust banking arm. MUFG general manager Takeshi Chino said that the two firms are jointly working on the issuance
In June, Japan passed a law permitting licensed companies to issue stablecoins, leading firms like Orix Corp. to consider launching these tokens, which promise benefits such as faster money transfers and settlements. Besides, MUFG has engaged in discussions with various entities regarding the utilization of its blockchain platform, Progmat, for creating stablecoins linked to foreign currencies.
According to Tatsuya Saito, MUFG’s vice president of product, Japan’s stablecoin market has the potential to reach up to ¥5 trillion ($34 billion), representing approximately a quarter of the estimated current global market size.
According to the announcement, Binance must obtain a license in Japan as an electronic settlement methods transaction business provider to execute the issuance plan. Upon completion, users will also have the ability to utilize stablecoins for cryptocurrency trading and potentially engage in payment services, as stated by Chino.
Binance Expands In Overseas Market
Binance has been facing the heat of regulatory crackdown across the world and in key markets like the US, Australia, UK, and others. However, it still continues to engage in meaningful dialogue with regulators to bring clarity to crypto rules. In a recent move, Binance reopened its Belgium operations after nearly 3 months of regulatory pause.
Last week, reports suggested that Binance is planning to delist stablecoins in the European market by June 2024. This was in the wake of the Markets in Crypto Assets (MiCA) rules that will come into effect by December 2024.
However, Binance chief Changpeng Zhao has issued a clarification regarding this matter. CZ said that there was some misunderstanding in the statement given by Marina Parthuisot, Binance’s French legal director, who said that Europe is yet to give approval on stablecoins. CZ added that they already have a couple of partners in Europe and plan to launch a fully compliant stablecoin.
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