The partnership involves Binance Japan and Mitsubishi UFJ Trust and Banking Corporation (MUTB) have partnered to explore the development of an innovative stablecoin that will be tied to various fiat currencies, including the Japanese yen and major global currencies like the US dollar.
Amidst ongoing challenges with US regulations, Binance has been enhancing its interactions with regulatory authorities in countries such as Japan and Belgium.
A key part of this initiative will be developing the new stablecoin on Progmat, a project supported by Mitsubishi that offers cutting-edge financial solutions like stablecoins and token offerings.
Binance Eyes New Stablecoin
Operating under Japan's revised Payments Services Act, Progmat is a recognized legal entity. MUTB is also working with other firms to optimize stablecoin transactions across various blockchains, including Ethereum.
Progmat allows businesses to launch their stablecoins, making it easier for them once intermediary registrations are complete, which presents a strategic advantage for Binance.
As one of the world's largest trading platforms, Binance continues to lead with its comprehensive services. In August 2023, Binance Japan started its operations with 34 tokens and is working toward acquiring more licenses to expand its offerings to Japanese customers.
A successful rollout of the stablecoin could significantly boost the adoption of Web3 technologies.
The partnership between MUTB and Binance aims to promote widespread use of Web3 and establish a robust Web3 environment in Japan through a compliant stablecoin on the Progmat platform, as stated in the press release.
Stablecoins are a backbone for dApps and the overall Web3 landscape. Their popularity is rising, as seen with companies like PayPal launching their own stablecoin, PayPal USD (PYUSD).
Binance Belgium Reopens
The Belgic crypto scene buzzed with excitement as Binance Belgium announced its reopening on Monday, following confirmation from Binance.
This comes after a three-month suspension by Belgium's Financial Services and Markets Authority (FSMA) due to regulatory breaches regarding the custody of digital and fiat currencies and custodial wallets for non-EEA residents.
The FSMA took decisive action in June, ordering Binance to cease its operations in Belgium due to alleged illegitimate services for non-EEA countries.
During the suspension, Binance redirected its Belgian users to the Polish branch. Meanwhile, its branches in Belgium and Japan are regaining momentum, although the US arm faces persistent legal hurdles.
The US Securities and Exchange Commission (SEC) filed a lawsuit on June 5 against Binance and its CEO, Changpeng Zhao, outlining 13 charges, including fund co-mingling and clandestine operations involving a market maker.
In addition, the SEC sought to freeze Binance US's assets, raising red flags. However, an agreement was later reached to tackle these legal issues.
Binance's troubles weren't confined to the US. Its branches in nations like England, the Netherlands, France, and Cyprus have also faced challenges. Additionally, significant staff departures from Binance US have sparked concerns about its internal stability.
