Binance Japan and Mitsubishi UFJ Trust and Banking Corporation (MUTB) have partnered to explore and develop “a new stablecoin pegged to fiat currencies, including the Japanese yen and other foreign currencies,” such as the US dollar.
Despite ongoing regulatory challenges in the US, the exchange improved its engagement with other regulatory landscapes, including Japan and Belgium.
As part of this strategic collaboration, the new stablecoin will be developed on the Progmat platform, a Mitsubishi-backed initiative that provides innovative financial solutions, including the issuance of stablecoins, security, and utility tokens.
Binance Eyes New Stablecoin
Progmat is a legal entity in Japan operating in compliance with the revised Payments Services Act. In addition to Progmat Coin, MUTB has also partnered with other companies to streamline stablecoin transfers and exchanges on different blockchains like Ethereum.
Companies can build their stablecoins on Progmat and have them issued once the intermediaries involved have registered with the government. This makes a major advantage for Binance’s development.
Binance is undoubtedly one of the global leading cryptocurrency exchanges by trading volume. Its Japanese branch launched in August 2023 with 34 tokens, more than any other exchange in the country. Binance Japan is working to register for additional licenses so that it can offer more services in Japan and match the global Binance offerings.
If successful, the issuance of the stablecoin will be possible and it has the potential to serve as a catalyst for increased adoption of Web3 technologies.
“Under this partnership between MUTB and Binance, the joint study aims to drive mass adoption of Web3 and foster a thriving Web3 ecosystem in Japan by issuing new stablecoin utilizing Progmat Coin platform compliant with the domestic regulations,” according to the press release.
Stablecoins are crucial for the functioning of decentralized applications (dApps) and the broader Web3 ecosystem. That explains why they have gained traction with many companies announcing development strategies. Digital payment giant PayPal recently joined the race as it launched a new stablecoin, PayPal USD (PYUSD).
Binance Belgium Reopens
Good news broke out in the Belgium crypto community as Binance Belgium announced its relaunch on Monday. Binance also confirmed the reopening.
The move came three months after the branch’s suspension imposed by the Belgian Financial Services and Markets Authority (FSMA). The suspension was a consequence of Binance’s violations of regulations pertaining to the custody of cryptocurrencies, fiat currencies, and custodial wallets for individuals outside the European Economic Area (EEA).
In June, the FSMA took decisive action by ordering Binance to halt its operations in Belgium. The regulatory authority had accused the exchange of offering exchange services and custodial wallet services to non-EEA countries, which they deemed to be in violation of Belgian law.
During this suspension, Binance promptly redirected its Belgian users to its branch in Poland. While Binance’s branches in Belgium and Japan appeared to be recovering, its US counterpart remained embroiled in legal difficulties.
On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, citing 13 charges. These charges included allegations of mingling funds with the CEO’s personal company and engaging in money laundering through a clandestine market maker.
Furthermore, the SEC sought a court order to freeze the assets of Binance US, which raised significant concerns. However, subsequent developments saw Binance US and the SEC reach an agreement to address these legal challenges.
The issues were not limited to the United States. Other Binance branches in countries such as England, the Netherlands, France, and Cyprus also encountered their own sets of problems. Concurrently, a series of departures of key personnel from Binance US prompted concerns within the community regarding the exchange’s internal stability.