March 31, 2020

Japanese Finance Industry Player becomes part of the Cryptocurrency Fray

It looks like another significant non-crypto company has just stepped onto the Japan crypto scene. Daiko Holdings now becomes the latest Japanese firm that operates on the crypto-currency platform. The SNC operator of the Bitgate crypto exchange has just transferred the controlling stake of about 58.1% of its 100% stake that the company received as an investment. According to the official announcement made by the Bitgate, SNC will withhold a minority 41.9% stake on the exchange rate. The company has additionally transformed itself into an official subsidiary of the group known as Daiko Holdings, which works an array of both financial and brokerage services together with the rental car, hardware, and marketing businesses. 

The decision is more imperative when the backdrop of recent years runs against it. Among the country’s most extensive conventional brokerage and finance services, providers are now developing crypto-currency arms. In some other cases, for instance, the SBI Group, they are indeed creating their platforms. Even though, like it is for the situation with agencies such as Monex Group, some owners prefer to attain smaller and licenses-holding exchanges. As a result of the fact that the procedure for acquiring the operating license from the governing FSA (Financial Services Agency) has proven that it is challenging. 

Other agencies have opted to pursue the hybrid approach. For example, Fisco (a firm that monitors the Japanese stocks and also offers investment advisory), recently launched their crypto-currency several years ago. However, they recently attained a rival platform named Zaif. They are, hence, set to finish the merger in the forth-coming weeks. Bitgate was developed in 2017 and was among the earliest platforms to acquire a permit from the Financial Services Agency. The company, thus, exclusively runs bitcoin.

The exchange is one of Japan’s minor platforms and has experienced a mixed year in 2019. The platform offers many services that, after what seems to have been the failed trial to revamp, are suspended. Daiko’s two senior executives have been added among the board of directors for the Bitgate board of directors together with the SNC CEO. According to the announcement made by Daiko Holdings, the business agency has lately developed the crowd-funding subsidiary, with the initial capital of about 92,000 US dollars. Above all, Daiko Holdings additionally runs the Platmall electronic commerce platform, which announced last year that it should begin accepting crypto pay.

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