Huobi Eyes Japan Expansion With Acquisition of Certified Crypto Trade

Huobi Team is to expand its investing solutions to Japan by way of an imminent offer to invest in local licensed cryptocurrency exchange BitTrade.

In an announcement on Wednesday, Huobi mentioned its wholly owned subsidiary Huobi Japan Keeping Ltd has inked an agreement with Eric Cheng, the sole proprietor of BitTrade, to purchase a majority stake in the agency.

BitTrade is at the moment a single of 16 licensed exchanges in Japan and also a member of the Japanese Digital Currency Trade Association.

Huobi declined to disclose the greenback sum of the acquisition and its precise ownership stake in BitTrade when questioned by CoinDesk.

A preceding announcement indicated that, as not long ago as June, Cheng experienced acquired 100 per cent of a licensed forex investing agency, Fx Trade Money, of which BitTrade is an affiliate, for $50 million.

Huobi’s chief fiscal officer, Chris Lee, commented on the acquisition:

“Leveraging on BitTrade’s management team and its Japanese government-accepted license, this is just the beginning as we seem to grow BitTrade into the most dominant participant in the Japanese cryptocurrency market.”

The offer will come immediately after, in 2017, Japanese fiscal large SBI Holdings scrapped a partnership with Huobi that would have allowed the latter to take a stake in SBI’s not long ago released VCTRADE crypto exchange. The banking large mentioned at the time it desired to use in-dwelling sources to construct a protection procedure adhering to the Coincheck hack in January.

The acquisition of a licensed exchange also follows Huobi’s recent effort to buy over 60 per cent of a community firm shown in Hong Kong with $70 million in a shift that paves the way for a doable back-doorway listing for the crypto exchange.

Japan walk signal impression by way of Shutterstock

The chief in blockchain news, CoinDesk is a media outlet that strives for the optimum journalistic benchmarks and abides by a demanding set of editorial insurance policies. CoinDesk is an independent working subsidiary of Digital Currency Team, which invests in cryptocurrencies and blockchain startups.