Huobi, a Chinese cryptocurrency exchange, acquires Japanese BitTrade! Entering the Japanese market!?
Huobi, a Chinese cryptocurrency exchange, acquires Japan's Bit Trade!
Bit Trade, a Japanese cryptocurrency exchange, announced at its extraordinary general meeting that it resolved to transfer its shares, effectively placing it under the umbrella of Huobi, a major Chinese cryptocurrency exchange,as its de facto subsidiary.
Bit Trade was established in September 2016 as a domestic Japanese cryptocurrency exchange and was licensed by Japan’s Financial Services Agency on September 29, 2017.
However, in early 2018, all of its shares were acquired by American entrepreneur Eric Cheng for 50 million dollars (about 5.5 billion yen).
Therefore, this news indicates that Eric Cheng transferred all his shares of Bit Trade to Huobi, making Bit Trade a wholly owned subsidiary of Huobi.
>>>Here is Bit Trade’s notice about the change in management authority!
What kind of company is Huobi, the cryptocurrency exchange?
Huobi is a cryptocurrency exchange established in China in 2013. In 2017, due to tightening regulations on cryptocurrencies in mainland China, it relocated its operations to Hong Kong and Singapore and has remained active there ever since.
As of September 2018, Huobi handles about 110 types of cryptocurrencies, making it one of the world's largest exchanges by scale.
Among them, spot trading and margin trading volumes were third in the world as of January 2018, making Huobi one of the major players next to Binance in China.
Huobi has long sought opportunities to enter Japan, but regulatory tightening on cryptocurrencies by Japan’s Financial Services Agency,Coincheck incidentmade it even stricter, and even Binance announced withdrawal from expanding into Japan, so Huobi has been cautious up to this acquisition.
>>>Why did Japan’s FSA warn Binance? What’s the reason?
Reasons Huobi has had difficulty expanding into Japan
To operate a cryptocurrency business in a region or country, you must obtain authorization from the local legal authorities.
Therefore, if Huobi were to operate a cryptocurrency exchange in Japan, it would have two possible approaches:
- Establish a new company or a branch in a selected region (country)
- Acquire an exchange that already exists in the region (country) and has a license to obtain management rights
This time, Huobi chose the second method to advance into Japan.
In other words, by acquiring Bit Trade, which is already licensed by Japan’s Financial Services Agency to operate as a cryptocurrency exchange, and making it a 100% subsidiary,operating in Japan becomes possible.
What was Bit Trade’s purpose in transferring shares to Huobi?
Bit Trade’s primary goals for transferring shares to Huobi are threefold:
- Build a global platform through collaboration with Huobi Japan
- Leverage the support of Huobi Group’s more than 500 engineers
- Create a global platform through collaboration with Huobi Japan
Huobi has achieved global expansion as a cryptocurrency exchange, and its scale ranks among the world’s top.
Moreover.......Continue reading here ↓
>>>See on the official Cryptocurrency Trivia site
