MUFG, Japan’s Largest Financial Institution, Plans to Release Bitcoin Trust Service to Secure Asset Security for Bitcoin Users

nBankruptcy comment: According to the Nikkei report, Japan’s largest financial group, the MUFG, is preparing to launch a trust service to protect the assets of bitcoin borrowers from the bankruptcy or loss of the exchange Impact. The service will be provided by Mitsubishi UFJ Trust, a unit of the group, for a fee. The service is tentatively scheduled to be launched in April 2018 and will be available only to Bitcoin traders when it is launched.n
nTranslation: Clovern
Japan’s largest financial group, MUFG, is preparing to launch a new service to protect assets held by bitcoin adopters from the cryptocurrencies they use to go bankrupt or suffer losses influences.n
This service, which the Mitsubishi UFJ Trust Bank is prepared to provide to bitcoin holders, may be the world’s first trust service of the same type, through which the holder’s bitcoin will be placed in a trust that is separate from the exchange’s assets in. Although Mt Gox, the world’s largest Bitcoin exchange, was bankrupt in 2014, which shocked the world, Japan became the largest Bitcoin exchange in the world today.n
This service ensures that the security of the holder’s bitcoin can be guaranteed by the trust bank in the event of any bankruptcy, improper operation or unlawful conduct by the exchange operator. According to Nikkei, Mitsubishi UFJ Trust, a unit of Mitsubishi UFJ Financial Group, has applied for patent protection.n
Bitcoin traders need to check this when the exchange is trading and allow Mitsubishi UFJ Trust to monitor their account. The report said the trust bank will also mark the suspicious activity and review the pending transactions. The report explained:n
n”For example, late-night sales of large amounts of bitcoin will not be dealt with immediately, but will be marked for inspection.”n
nMitsubishi UFJ Trust Bank will keep the user’s transaction log of the past guarantee and ensure the security of its holder’s bitcoin in case of any loss due to an accident suffered by the operator. However, the loss sustained by the holder due to price fluctuations is beyond the scope of this service.n
Although users need to pay the financial giant a premium to access the service, Bitcoin Chief Executive, Bitbank, Tokyo, explained:n
n”Customers feel relieved that trust banks are managing their assets.”n
nThis service of Mitsubishi UFJ Trust Bank is tentatively scheduled to be launched in April 2018 and will only be available to Bitcoin traders when it is launched. It is noteworthy that this asset management service can only be provided after the Japan Financial Services Agency (Japan’s Financial Regulatory Authority and the Commission) has identified cryptocurrencies as assets similar to real or trust-based securities .n

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