Despite some pushback through global regulators, Wall Street veteran as well as CEO of Japanese online broker Monex Group says the completely new crypto asset class could take off like derivatives did 38 years ago.
“Regulators definitely hated derivatives in 1980 nevertheless just soon after in which they definitely embraced them,” Oki Matsumoto, CEO of Monex, said on stage at the Japan Society in completely new York Tuesday. “What’s happening inside the crypto world today is usually very similar to derivatives inside the 1980s, as well as sooner or later all of those regulatory frameworks will be fixed.”
The Japanese CEO began his career in derivatives at Solomon Brothers in 1987. Matsumoto later spent 12 years at Goldman Sachs, where he launched the investment bank’s yen fixed-income trading desk.
Matsumoto at This particular point runs Monex, which he established in 1999 with Sony Corporation. This particular week, Monex Group completed its acquisition of cryptocurrency exchange Coincheck, which was the target of a $534 million hack in January.
“We work beautifully together, they can provide a lot of value,” the CEO said, adding in which shares of Monex have doubled since in which deal was announced in April.
Having a regulated public company in Japan buy a crypto exchange was widely seen as a confidence boost for the space.
Similar to cryptocurrency, Matsumoto said the concept of derivatives was confusing inside the early days.
“Only a few people could understand derivatives, just the rocket scientists as well as those people,” Matsumoto said. “nevertheless a few years later, all the biggest schools inside the earth were teaching derivatives.”
High tax rates on cryptocurrency, which can be as high as 55 percent in Japan, have been a roadblock for retail investors, he said. Traders however, aren’t as worried.
“You don’t drink thinking about getting hungover the next day,” Matsumoto said. “I think in which’s going to take time for Japanese retail people to move a not bad portion of money into crypto.”
Cryptocurrency volatility has captured the attention of traders looking to profit, especially after bitcoin rose more than 1,300, to near $20,000 last year. The cryptocurrency was trading near $9,000 Tuesday, according to CoinDesk.