Japanese crypto exchange FXcoin is set to start its trading services from next month as the digital currency market is gaining steam again.
As reported by Blomberg on Thursday, the exchange will initially offer services with Bitcoin, however, it has plans to expand services with other popular digital currencies including Ripple and Litecoin.
The exchange is also aiming to build a swap market, offering investors a tool for hedging on the price volatility.
Headed by Tomoo Onishi, FXcoin was formed more than two years before and received approval from the country’s Financial Services Agency (FSA) to offer crypto trading services. Notably, only 23 exchanges have received the mandatory FSA license to legally operate in Japan, a few of which are yet to start a business.
The report detailed that FXcoin has already started the registration process for on-boarding customers.
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Making the pandemic an opportunity
Onishi is also taking the opportunity to start the trading services when the world is struggling with the COVID-19 pandemic as he believes that people receiving stimulus cheques might end up investing in digital currencies.
We have seen a similar trend in the United States when Coinbase revealed that crypto buying transactions with $1,200 spiked after the government provided a pandemic stimulus of the exact amount.
Though many saw crypto as an alternative asset immune to the current economic stress, the market followed the traditional assets to take a sharp downturn. However, with upcoming major events like Bitcoin halving and release of Ethereum 2.0, the prices are recovering again.
“There is no asset that’s absolutely safe,” Onishi told Bloomberg. But he is “a bull on virtual currency prices.”
He came from the traditional finance industry after spending over 17 years at Deutsche Bank in leadership roles.