Japan’s FXCoin will begin operations after more than two years of building its foundation led by founder and chief executive Tomoo Onishi – ironically an ex-FX sales manager with Deutsche Bank.
The exchange has begun accepting applications to open accounts and will initially focus on Bitcoin, according to a «Bloomberg» report – a timely choice given its more than 40 percent surge since mid-March. FXcoin has plans to later expand into other cryptocurrencies like Ripple and Litecoin.
The firm will also target to increase its headcount to 50 by year-end, from its current 36, and begin profiting by 2021-end with no quantitative earnings target.
FXcoin, backed by Softbank subsidiary and financial conglomerate SBI, is amongst the 23 exchange operators registered with Japan’s regulator.
Global Stimulus Favors Crypto
Onishi expects digital currencies to benefit from the ongoing coronavirus pandemic, due to ample cash flooding the market from global stimulus measures. What’s more, he notes that there is evidence that the new asset class’ price movements are uncorrelated with conversational asset prices in the long-term – a key differentiator in a market rushing to find diversification into real alternatives in an increasingly correlated world.
Despite his bullishness, Onishi still provides the standard investor warning, underlining that «no asset [is] absolutely safe».
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