As cryptocurrencies expand their influence, Japanese regulators are trying to keep up to ensure fair and transparent practices are taking place
A Japanese digital currency exchange service called FXCoin is gearing up for the launch of its operations in May after finally gaining approval from Japanese regulators. According to a recent Bloomberg report, Tomoo Onishi, who previously worked for Deutsche Bank, will be at the helm of the FXCoin as its CEO.
Onishi has worked in the financial industry for many years and is well suited to lead the exchange through the ups and downs of the financial and trading industry. FXCoin was launched two years ago and since then has developed its platform while it awaits regulatory approval from Japan’s Financial Services Agency (JFSA).
The JFSA requires Japanese cryptocurrency exchanges to hold mandatory operating licenses. The approval of the exchange means that it is regulated; good news for any cryptocurrency trader looking for a trusted exchange to scale the heights of cryptocurrency trading. The introduction of regulatory approval means there are now 23 cryptocurrency exchanges that have received regulatory approval from the JFSA.
However, FXCoin’s unique selling point is its leadership from a former banking industry heavyweight and backing by SBI Holdings – one of the top companies in the financial industry.
FXCoin’s launch comes at an opportune time when cryptocurrencies are experiencing renewed interest, that some are suggesting is correlated to the impact of the coronavirus on fiat currencies. Many countries have been experiencing an economic slowdown as a result of the coronavirus, which in turn has negatively impacted fiat currencies, resulting in massive loss of value.
Traders have thus been forced to look for safe havens to protect their wealth, and the best way to do that is to invest in other assets that are not affected by the economic downturn. Cryptocurrencies, it has been argued, are immune to economic effects like inflation and are instead driven by speculation and demand.
Cryptocurrencies are thus expected to rise in value, or at least continue to experience significant volatility. FXCoin’s May launch could take advantage of the renewed interest so that it can tap into growth opportunities in the crypto market.
FXCoin will initially solely trade Bitcoin but plans to expand to more cryptocurrencies, such as Ethereum, Litecoin and Ripple. Onishi revealed that his exchange plans to provide traders with a hedging tool that they can use to protect against price volatility through the introduction of a swap market in an attempt to lure traders to the platform.
The exchange has started accepting registrations ahead of its official launch next month. The promising nature of the FXCoin exchange, the regulatory aspect, and the fact that it has a former banking industry exec at its helm makes it an enticing offer to cryptocurrency traders looking for a new exchange to use.