Binance Crypto exchange Japan could be still “a long way off” its business and activities being properly understood and in gaining regulatory acceptance, stated the exchange’s Takeshi Chino.
The general manager of Binance Crypto exchange Japan stated crypto stablecoins as the “glue” betwixt the real economy and the blockchain tech in an interview with CoinDesk Japan.
Takeshi Chino, speaking ahead of Binance’s re-entry into Japan via its acquisition of regulated cryptocurrency exchange Sakura Exchange BitCoin, stated how volatility of cryptocurrency prices may lead to profit opportunities but won’t be help stimulate broader demand for cryptoassets.
“We believe that crypto stablecoins will serve as the glue betwixt the real economy, the blockchain tech economy, and the Binance Crypto exchange ecosystem,” Chino stated. ” And once you do something stably, price fluctuations become noise.”
Crypto Stablecoins are pegged to the value of traditional assets, usually fiat currencies such as the United States dollar, and this is why are designed to be free of the price swings that often afflict digital currencies like Bitcoin (BTC) (BTC).
Rival cryptocurrency exchanges Coinbase Crypto exchange (COIN) and Kraken have both withdrawn from the Japanese market in the last 6 months, citing “market conditions” as the reason.
Chino stated cryptocurrency winter could be hampering the traditional model of a cryptocurrency exchange business, given how lower valuations and volume of trading will diminish revenue from charges. He stated that Binance’s vision for “economic freedom” through cryptocurrency and blockchain tech supersedes the exchange business model and the current market conditions.
“The ecological system has numerous facets,” he stated. ” For instance, we will provide numerous services from a different angle to fund, and we will likewise provide numerous IP (intellectual property) contents in the form of Web3.”
Binance’s move back into Japan next 30 days will come two years after the exchange received warning from the country’s Financial Services Agency (FSA) that it was operating there without permission.
Chino stated how one of the keys to win regulatory acceptance in Japan is ensuring understanding of how its products work to be able to win trust, something he admits could be a challenge.
“We are confident about our product and technology, but we are still a long way off in terms of whether the company Binance Crypto exchange and its activities are properly understood,” he said.