The crypto fever is on!
And now, the bitcoin trading becomes the new mainstream in Japan, leading financial firms are stepping in to offer services to preserve their market share.
MUFG, the largest bank in the country, is now planning to launch its own exchange, a pegged cryptocurrency and bitcoin segregated accounts for clients of other exchanges.
Mitsubishi UFJ Financial Group, Inc. (NYSE:MTU), the fourth largest bank in the world, plans to launch its own cryptocurrency exchange this financial year.
Based on local reports from the country, MUFG has already notified the Financial Services Agency (JFSA) on the decision to launch an exchange.
The bank is known to be working on issuing its own cryptocurrency.
The plan as it seems now is that by controlling the exchange where people can trade this MUFG Coin, the bank could suppress drastic fluctuations in its price so it can be used for shopping, settlements and remittances stably.
Furthermore, the idea of the upcoming cryptocurrency will be kept pegged at around JP¥1, but not fixed in advanced so as to bypass regulations regarding issuing and transmitting such private money in Japan.
MUFG only envisions its coin used to make stable transactions in Japan, once the cryptocurrency will be out in the wild global traders can use it for other uses as well.
One interesting application is for it to be used in trading pairs on non-fiat exchanges instead of USTD, backed by the largest bank in Japan instead of Tether.
The service will also monitor accounts for suspicious activity and uncommon transactions, which could get flagged for inspection instead of being processed.
The service, which will be available just for bitcoin at first, is expected to launch in April 2018 or as soon as the JFSA recognizes bitcoin as an asset that can be placed in a trust.