Huobi Group intends to expand its influence in Japan. The subsidiary company, Huobi Japan Holding Ltd. will become the owner of a controlling stake in the Japanese crypto exchange BitTrade. The amount of the transaction was not disclosed.
Global experience of Huobi will be used to ensure that BitTrade has become a leader in the Japanese market. At the same time, the Huobi Japan Holding Ltd. team plans to make the exchange available to users around the world.
BitTrade belongs to the Singapore’s multimillionaire and entrepreneur Eric Cheng. Earlier in summer, he bought all the shares of the licensed trading company FX Trade Financial for $50 million, becoming the sole owner. BitTrade is an affiliated company.
WHY IS IT IMPORTANT?
- After hacking the Coincheck exchange with which more than $500 million were stolen in January of this year, Japan began to closely monitor the activity of the crypto platforms in the domestic market. The financial regulator issued orders to improve certain aspects of their activities and even the closure of some of them.
- BitTrade is a Japanese crypto exchange, one of 16 exchangers licensed by the Japanese government. It is a member of the Japanese Virtual Currency Exchange Association.
- The deal with BitTrade is part of Huobi's expansion efforts on the Asian crypto market. Recently, the company bought 60% of the shares of the cryptocurrency firm from Hong Kong with an annual turnover of $70 million.