Despite some refusals from global regulators, veterans Wall Street and Japanese online brokerage CEO, Monex Group said that the new cryptocurrency could "take off" like a derivative 38 years ago.
"Regulators really hate derivatives in 1980, but soon after that they actually hugged him," said Oki Matsumoto, CEO of Monex. "What's happening in today's crypto world is very similar to a derivative in the 1980s, and sooner or later all the regulatory frameworks will be fixed," he continued.
The Japanese CEO started his career at Solomon Brothers in 1987. Later, Matsumoto spent 12 years working at Goldman Sachs, the place where he launched fixed income trades in the form of yen currency in investment banks.
Matsumoto is now the CEO of Monex, which he founded in 1999 with Sony Corporation. This week, Monex Group completed the acquisition of Coincheck's cryptocurrency exchange, which was the target of $ 534 million hacked in January.
"We work very well together, they can deliver a lot of value," said the CEO, adding that Monex shares have doubled since the deal was announced in April.
Having a public company set up in Japan, and buying crypto exchange exchanges, is widely viewed as a vast trust impetus by investors.
Similar to cryptocurrency, Matsumoto says that the concept of derivatives is also confusing when launched.
"Few people can understand the derivatives, just rocket scientists and the people," Matsumoto said. "But five years later, all the world's largest schools also teach derivatives."
However, the high tax rate on cryptocurrency, which can be as high as 55 percent in Japan, has been a deterrent to retail investors. However, it does not become a barrier for traders.
"You did not think about the next day," Matsumoto said. "I think it will take time for Japanese retail people to move most of the money into crypto."
The volatility of cryptocurrency has attracted the attention of profitable traders, especially after bitcoin rose more than 1,300, close to $ 20,000 last year.
Just for information, bitcoin traded near $ 9 in trading on Tuesday (1/5), according to CoinDesk.
In the finance world, a derivative is a bilateral contract or a redemption agreement whose value is derived or derived from the product being the "principal reference" or so-called "underlying product"; rather than trading or physically exchanging an asset, market participants make an agreement to exchange money, assets or a value in the future by reference to the underlying asset.