Recently, in Japan there occurred an important event, BitTrade was bought for only $50 mln by Eric Cheng who is known to be one of the richest businessmen of Singapore. This operation made him a full owner of BitTrade which is one of a few Japanese crypto exchanges that obtained a license by the Financial Services Agency. It was reported in the news that Mr. Cheng is planning to buy BitTrade’s subsidiary, one of the biggest national trading platforms.
This news highlighted that this businessman became the first international investor who bought all the shares of one company, not to mention that it was one of a few government-licensed companies. Cheng stressed the fact that cryptocurrency business grows rapidly. The demand for crypto is increasing which means that he might need to create a fertile soil for its further development. He noted that with use of this government-licensed company he it will be easier to cooperate with the government to set a base for work on developing other firms.
A new owner is planning to improve the working process including scaling and expansion of offerings, fortifying cybersecurity, and developing a more intuitive interface. Mass-media reported that Mr. Cheng is not planning to adjust the way the platform will operate after the purchase and that all the offering customers could use before will remain.
A few months ago, two loud scandals in the field of cryptocurrency have occurred. They firms involved were the Coincheck and Mt. Gox. These scandals have caused a severe regulatory policy in the cryptocurrency industry of Japan. While the license BitTrade is holding implies compliance with severe standards, Financial Services Agency is continuing increasing them in relation to this exchange company.
In April, the Japanese government established a specialized organization for providing assistance to Japanese companies, some of whom have crushed under high licensing requirements. Nevertheless, Japan is still showing a rapid development of the crypto industry. Recently, a leading company in the fintech field announced it would launch a crypto exchange this year.