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Despite the challenges faced with regulatory authorities in the West, Binance, the world’s largest cryptocurrency exchange by trading volume, seems to be accelerating its development in the East. According to a report by Coinpost, the exchange is considering launching a new stablecoin in Japan in collaboration with a leading financial institution.
Will Binance Help Drive Stablecoin Growth in Japan?
The institution in question is MUTB, a subsidiary of Mitsubishi USJ Financial Group, Japan’s largest financial institution. The platform announced that it will start collaborating with Binance Japan to launch two new stablecoins in the country, pegged to the Japanese Yen and the US Dollar.
Furthermore, these stablecoins will be released on multiple blockchain platforms, including Ethereum and Polygon. This plan will also benefit from the compatibility with Japanese regulations provided by the Progmat Coin platform, which is backed by Mitsubishi.
Japan drew attention by becoming one of the first countries to accept a stablecoin bill in June 2022, providing clarity on the definition of stablecoins and classifying them as legal cryptocurrencies.
Moreover, stablecoins were positioned as an “electronic payment method” under the revised Payment Services Act, and Progmat platform continues its development in compliance with this law.
The Development of Cryptocurrencies
While Binance is making progress in Japan, the cryptocurrency exchange is facing legal barriers in Western countries, especially in the United States. After a five-year hiatus, the exchange re-entered Japan through the acquisition of Sakura Exchange BitCoin in November 2022. It then rebranded as Binance Japan K.K. in August this year and announced its resumption of operations. The crypto platform currently offers services to investors in 34 cryptocurrencies.
Meanwhile, the departure of several C-suite executives from Binance.US may be making things increasingly challenging for the US-based exchange. Since the US Securities and Exchange Commission (SEC) took action against the exchange, it seems to be facing a downward trend.
The commission filed a lawsuit against the exchange, BAM, and its CEO Changpeng Zhao for allegedly disregarding securities laws. In recent developments, Binance has moved to dismiss the case, arguing that the evidence provided by the SEC is insufficient.
