Home Market News Crypto Japan’s Monex Plans To Acquire The Cryptocurrency Exchange Coincheck

Japan’s Monex Plans To Acquire The Cryptocurrency Exchange Coincheck

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Coincheck, the cryptocurrency exchange which was hit by a heist of 350 million USD in digital money might be bought by the Japanese online brokerage firm Monex Group Inc. The heist caused many countries including China, Japan, and the UK to consider tougher measures to control cryptocurrency, while Twitter banned all advertisements related to cryptocurrency from the social media platform.

According to Nikkei “Monex is believed to be offering several billion yen for a majority stake in the Tokyo-based exchange, sources said. The brokerage aims to install a new management team and rebuild the cryptocurrency exchange under its own supervision,” which means that Coincheck’s Chief Executive Yusuke Otsuka and the founding president Koichiro Wada will have to step down if the Monex deal works out, although they will still be shareholders.

The news has had a massive impact on Monex itself which saw a rise of its share value by 23%. Nikkei reports that the news of the potential acquisition “caused the price of bitcoin to jump 5% to $7,355 as of 1:52 pm Japan Standard Time, from around $7,000 around midday.”

Coincheck digital money heist in January affected Japanese cryptocurrency dealers in an extremely bad way as they came under the scrutiny of Japan’s Financial Services Agency. Some of the crypto exchanges were forced to shut down due to tightened regulations. Anyone expecting to start a cryptocurrency exchange must adhere to the data security and safeguard standards set up by the FSA.

On March 08 2018, Monex reported plans to “Provide Clients with Free Real-Time Spot Data for World’s Leading Cryptocurrencies” in a news release. With their reputation within Japan Monex is planning to become the crypto market leader; and the “several billion yen” they might spend will definitely be money well spent. Established in 1999, Monex has acquired large companies such as Tokyo Forex, ORIX Securities Corporation, Boom Group, Tradestation Group Inc, and Sony Bank Securities Inc. on their way to current reputation as a leader in the financial sector. With so much of experience, buying Coincheck cannot be a decision made in haste.

 

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