- While crypto exchange Binance continues its legal battle with the U.S. Securities and Exchange Commission (SEC), it is actively seeking new opportunities in international markets.
- MUFG (Mitsubishi UFJ Financial Group) has initiated discussions with various organizations to use its blockchain platform, Progmat, to create stable cryptocurrencies tied to foreign currencies.
- Despite regulatory pressures affecting Binance on a global scale, including major markets like the U.S., Australia, and the U.K., the exchange continues to engage in meaningful dialogues with regulators to clarify crypto rules.
Binance, the world’s largest crypto exchange, plans to expand its business with the partnership it established with Mitsubishi UFJ Financial Group in Japan.
Binance Makes a Significant Move in Japan
Despite ongoing legal challenges with the U.S. SEC, Binance is exploring opportunities in foreign markets. The latest development suggests that Binance plans to launch stable cryptocurrencies denominated in USD, EUR, and Japanese Yen within Japan’s booming crypto industry by 2024.
For this project, Binance has partnered with the trust banking unit of Mitsubishi UFJ Financial Group. Takeshi Chino, MUFG’s CEO, confirmed the collaboration in a statement.
In June, Japan passed a law allowing licensed companies to issue stable cryptocurrencies, prompting firms like Orix Corp. to consider launching tokens that promise faster money transfers and payments. Additionally, MUFG has begun discussions with various organizations about using its blockchain platform, Progmat, to create stable cryptocurrencies tied to foreign currencies.
According to Tatsuya Saito, Deputy Head of MUFG’s product, Japan’s stable cryptocurrency market has the potential to reach approximately 5 trillion Japanese Yen (around $34 billion), representing about a quarter of the estimated global market size.
As per the announcement, Binance will need to obtain a license as an electronic payment services transaction provider in Japan to execute this plan. Once completed, users can utilize stable cryptocurrencies for crypto trading and participate in payment services, as mentioned by Chino.
Binance’s Expansion into International Markets
Despite regulatory pressures in major markets worldwide, including the U.S., Australia, and the U.K., Binance continues to engage in meaningful dialogues with regulators to clarify crypto rules. Just last week, it was reported that Binance planned to delist stable cryptocurrencies in the European market by June 2024, in compliance with the Markets in Crypto Assets (MiCA) rules set to take effect in December 2024.
However, Binance CEO Changpeng Zhao (CZ) clarified the situation. CZ stated that there was a misunderstanding in a statement made by Marina Parthuisot, Binance’s Legal Director in France, who said that Europe had not yet approved stable cryptocurrencies. CZ pointed out that Binance already had several partners in Europe and had plans to launch a fully compliant stable cryptocurrency.
