BitTrade (Japanese crypto exchange) has been acquired for S$67M (~US$50M) by a Singaporean multi-millionaire and entrepreneur – Mr. Eric Cheng, Asia One reported.
Cheng wil take a 100% stake in BitTrade Co., Ltd from the acquisition, one of only 16 Japanese crypto exchanges receiving a license from Japan’s financial watchdog, the Financial Services Agency (FSA). Cheng is also acquiring BitTrade’s affiliate company named FX Trade Financial Co., Ltd which is one of Japan’s leading forex trading platforms.
The acquisition makes Cheng the first foreign investor holding a 100% stake in an FSA-licensed trading platform. “The cryptocurrency industry is growing exponentially. Against this backdrop, the key to capture the rising demand is having a well-regulated and licensed outfit. With this Japan’s FSA-licensed platform, I will work closely with the regulators to scale this platform globally.” said Cheng. Both platforms will be aggressively scaled and expanded trading services on the exchanges, strengthened cybersecurity measures, and developed more international-user-friendly interfaces.
Regarding to Cointelegraph Japan, Bitrade had said that “there is no policy to change the basic business framework under the new ownership,” and those currently provided services will be continued.
Two high-profile Japanese crypto exchange scandals include unprecedented US$532M Coincheck hack on January and the conspicuous collapse of Mt.Gox based in Tokyo, which have triggered an progressively transparent regulatory climate for crypto in Japan. The FSA license held by BitTrade already specified strict guidelines and the Financial Watchdog also introduced further requirements for crypto exchanges.
A self-regulatory agency for Japanese exchanges was congregated in April to support to domestic operators, some of them have buckled under escalating pressure from the FSA. However, the country continues to show high crypto adoption levels. Previously, a leading Japanese fintech company announced it would be launching a crypto asset exchange this year.
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