Japanese Fintech Company Halts Crypto Exchange Launch

May 6, 2019

Fintech firm Money Forward Inc., the operator of one of Japan’s most popular personal budgeting apps, has halted plans to launch a crypto asset exchange, citing a bear market.

As reported by Cointelegraph, Money Forward had set up a dedicated subsidiary for its crypto exchange project in May 2018. The company had planned to launch a crypto media platform in addition to a crypto exchange and a digital assets remittance and settlement system.

The recent announcement disclosed that the firm’s board of directors resolved to cancel the procedure of applying for official registration and to postpone the development of the planned crypto exchange project.

The board’s announcement framed the decision within the context of the company’s first quarter consolidated losses for the fiscal year ending November 2019, stating, “The virtual currency market has cooled rapidly and the downside risk of profitability has been increased by continuing the business.”

The announcement also cited a growing international debate over virtual currency platform hacks and money laundering risks, noting that the costs for ensuring a robust system that protected consumers, while also facilitating convenience for traders, have risen substantially amid an ever-changing business landscape.

However, the board ruled that blockchain research and development will continue, although service provisions for Money Forward’s crypto media platform, Onbit, will end on May 31st.  

Earlier this year, Money Forward’s subsidiary attained second-tier membership with the Japan Virtual Currency Exchange Association (JVCEA), a self-regulatory crypto body established in March 2018 to ensure protection standards for investors. The second-tier is for businesses looking to apply for official crypto exchange operating licenses from the country’s Financial Services Agency (FSA)

Source: cointelegraph.com

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain: Fine-tuning the Music Industry
Music might be in need of another tech disruption in the form of blockchain.

July 17, 2019

Graph Blockchain Secures Contract with South Korean Transport Ministry
The pilot project is for storing traffic data on a blockchain network as part of the Smart City nati...

July 13, 2019

Hong Kong, a Great Place for Blockchain Startups
It is quite evident that Hong Kong is quite rapidly developing to be a blockchain hub in the region ...

July 12, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us