Japan is indulging more in Bitcoin trading. The most significant bank in the country, MUFG is now planning to launch its cryptocurrency exchange before the end of this year to offer pegged cryptocurrency and bitcoin segregated accounts for clients.
The bank is also reports to be working on its cryptocurrency that will be trading on the new exchange.
The bank’s idea is that acting to control the exchange point will reduce drastic price fluctuations that other cryptocurrencies have to endure. Being a stable coin, it can, therefore, utilizes for remittances stably, settlements and shopping. It is rumored that the currency will be pegged at around JP¥1.
Segregated accounts planned by the bank will be world’s first trust arrangement for cryptocurrencies. They will be using to protect accounts in case there is a security breach or when the company goes into bankruptcy. The reports can also help with monitoring for suspicious activity and unusual transactions. They will be using to link the cryptocurrencies to exchanges. It will work the same way segregated accounts protect forex traders.
These accounts will be available to MUFG customers sometimes after April 2018. There will be fees considers to the service.
Japan, which accounts for 40 percent of global bitcoin trading, has seen an increase in Bitcoin-related activity including in e-commerce. The country has a viable regulation on cryptocurrencies even as its neighbor South Korea gets aggressive against cryptocurrencies.
On the same note, e-commerce giant DMM Group, a local company, launched its own seven asset cryptocurrency exchange on Jan 11.Thus it highlights the growing level of Blockchain tech adoption in Japan.