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Speaker 1: I am joined on the set here at the Bloomberg

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Speaker 1: New Economy Forum with the bit Flyer CEO user kind of.

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Speaker 1: I mean it's extraordinary user, what we have seen in

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Speaker 1: the crypto space in the last couple of weeks, and

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Speaker 1: particularly what has happened at the ft X bankruptcy and

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Speaker 1: collapse there. Does it show you that we need more transparency,

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Speaker 1: more regulation. Does there need to be more international standards

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Speaker 1: here too? Yes, for sure. The Japanese have advanced for

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Speaker 1: the IR regulations. We have the segregation with the customer sets.

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Speaker 1: You know, we need to actually show the audited financial

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Speaker 1: states report to the public. So I think we should

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Speaker 1: standardize that kind of regulation to the world. When we

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Speaker 1: look at the investor sentiment here, I mean, it's going

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Speaker 1: to be hard to try and get people back into

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Speaker 1: the crypto space. What are you sort of telling your investors.

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Speaker 1: What is bitflyer really trying to do to calm investor sentiment? Um? Well,

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Speaker 1: bit actually has a mostly actually Japanese clients, so there's

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Speaker 1: almost a very few impact So I'm I'm telling the

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Speaker 1: a lot of actually the other investors should come to

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Speaker 1: the Japan which is actually pretty much a protected and

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Speaker 1: there's some actually Japanese our clients are actually trading outside

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Speaker 1: of Japan, which may not be protected by the regulation

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Speaker 1: Japanese regulations, so should they might actually coming back to

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Speaker 1: uh Japanese domestic exchanges. But we do have some sort

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Speaker 1: of I guess, fairly lenient guidelines in Japan around crypto

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Speaker 1: assets and businesses. I mean you're saying that we are

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Speaker 1: starting to see some more regulation the collapse of f

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Speaker 1: t X, though, I mean, how does that change things?

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Speaker 1: What are the regulators looking at specifically in Japan? Um

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Speaker 1: In Japan, there's actually huge discussion that customer protection in

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Speaker 1: the Japanese law uh vasas Chapter eleven. So people now

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Speaker 1: trying to UM protect your Japanese um AS customers outset

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Speaker 1: as much it's possible, so that are still actually uh

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Speaker 1: there's a controversial discussion between which law is superior, So

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Speaker 1: US are Chapter eleven or Japanese um SO Fun Settlements Act.

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Speaker 1: Does bidfly have any exposure to f t X or

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Speaker 1: f t X Japan noer. Okay, when we look at

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Speaker 1: the crypto industry in Japan, as we mentioned about regulation,

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Speaker 1: there has been some self regulation too, I mean, with

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Speaker 1: with what's happened with ft X, with what's happened as

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Speaker 1: well with what we're saying in a number of the

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Speaker 1: concerns about crypto, what sort of I guess movements are

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Speaker 1: you doing internally as well to try and stem the

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Speaker 1: full out. Well, we are actually having spenting a lot

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Speaker 1: of time in the in the past actually four or

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Speaker 1: five years after the coin check incidents to implement the

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Speaker 1: very strong letilation to protect their customer's assets. So fast off,

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Speaker 1: as I said, like showing your financial statements public and

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Speaker 1: the protecting the customer assets, segregating the customers sets. For example,

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Speaker 1: in Japan, we exchange cannot touch the customers asset even

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Speaker 1: one yem, so we need to actually put the all

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Speaker 1: the fifth current is into the custodian and we need

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Speaker 1: to stow the old crypto into their code wallet or

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Speaker 1: maybe hot wallets. So and then we need to prepare

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Speaker 1: for the exact same amount and the exact same type

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Speaker 1: of the coins to match the client's assets in the

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Speaker 1: hot wallet, which actually strengthened the strengthen the customers asset

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Speaker 1: when it when the hot wallet is hacked, we need

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Speaker 1: to replace the customers sets by our actually farms assets immediately.

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Speaker 1: So you're talking there about the hacking of coin check,

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Speaker 1: which happened in We also had the hacking amount Gox

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Speaker 1: in twenty fourteen. When we look at what happened with

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Speaker 1: the ft extra plan, what do you think of the

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Speaker 1: chances that users do get their assets back? For the

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Speaker 1: Japanese users, may it's highly likely because the protecting and

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Speaker 1: segregated because in the rehabilitation plan in the chapter eleven

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Speaker 1: may not started the customers and they may respect the

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Speaker 1: Japanese law. That's my just personal opinion. So you're still obviously,

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Speaker 1: I mean, being that the CEO a bit a big

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Speaker 1: believer in the crypto space, what what happens in the

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Speaker 1: next five to ten years in this space? Well, for

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Speaker 1: the actually um Um next actually one to two years,

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Speaker 1: may Um stale for a while, but after that we

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Speaker 1: were still believing that we've three it's got very good

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Speaker 1: uh next innovation, and that we still believe that people

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Speaker 1: will come back to this space. In October, we also

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Speaker 1: heard Japanese regulators say that they will ease token listing

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Speaker 1: of the tokens. Do you think that's still going to

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Speaker 1: happen in the way of what we saw. We're still

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Speaker 1: discussing now. The tax reform is a very sensitive topic

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Speaker 1: right now. Um, we may we as actually a Broxte

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Speaker 1: association trying to submit the request that changing the tax

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Speaker 1: rate on the I E O U in sil exchange

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Speaker 1: offering that the company actually issue're talking uh and the

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Speaker 1: received some capital. So we try to actually, isn't that

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Speaker 1: tax um tax rate from um from somewhat actually rate

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Speaker 1: to theear down and just tell us, I guess a

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Speaker 1: little bit about your business too, and how you're you're

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Speaker 1: coping amainst all the inflationary pressures that we're seeing concerns

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Speaker 1: about the global downturn. Well, Japan, if you talk about

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Speaker 1: the inflation Japan is kind of Japan does not. But

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Speaker 1: on the broader global front, well, a lot of people

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Speaker 1: actually think it's um, you may not continue. So I'm

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Speaker 1: not very sure if this situation continue for the next

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Speaker 1: actually a five years, may some actually people may be

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Speaker 1: getting more optimistic the situation. My settle down, all right,

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Speaker 1: So it's been great to talk to you. A bit

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Speaker 1: flashy or user kind of with us here on the

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Speaker 1: second day of the Bloomberg New Economy Forum here in Singapore,