Nomura Chief Executive Jez Mohideen mentioned that the decrease in transaction volume in crypto negatively affects the company’s profitability.
Nomura Holdings entered the digital asset side last year. The Japan-based finance giant started its activities in the digital asset sector with its organization called Laser Digital. The company’s expectations were to make a profit in 2024. However, things are not progressing as expected on Nomura’s digital asset side.
Nomura Holdings’ crypto unit has had its share of the collapse and trading losses on the digital assets side. In an interview with Bloomberg, Nomura Chief Executive Officer Jez Mohideen stated that the bad scenarios in the crypto industry also affected them. Mohideen said the processes delayed profit expectations.
Nomura takes on regulators and the crypto industry
Citing bad scenarios in the cryptocurrency industry, Nomura stated that, as a company, they lowered their profit expectations in crypto. Nomura Chief Executive Officer Jez Mohideen stated that it was too early for earnings.
Mohideen has focused on the crypto industry. However, as it is known, the market has been affected by negative news flows and regulatory pressures lately. For this reason, the volume in crypto is quite low. It is also noticeable that activities in the crypto sector have decreased. Considering all these factors, Mohideen stated that the profit expectation for Laser Digital has been postponed.
“Our journey to profitability may take a little longer than we anticipated a year ago,” Nomura’s crypto chief said in an interview. Exploring the issue, Mohideen touched on the fact that volumes are falling and regulators are constantly loading up on crypto with something new.
Although Mohiden addressed the bad situation in the sector, he also gave positive signals. It is reported that Laser Digital has hired 70 people so far and plans to hire 20 more people over time. However, Nomura has not lost faith in the industry. Because the company established an office in Tokyo to expand its crypto activities.
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