Japan Tech Giant GMO Internet To Create Bitcoin Mining Operation

Blockchain, FinTech, Investing, News, Regulation, Uncategorized | September 8, 2017 By:

Japanese technology giant GMO Internet Group has started its own bitcoin mining operation in its home country.

GMO plans to have a large bitcoin mining operation running by the beginning of next year. The move will complete the plans the conglomerate first revealed in January of this year and accelerated after Japan legalized bitcoin.

To date, bitcoin mining is dominated by three companies. But the entry of the billion-dollar GMO into the market is sure to shake things up, particularly as China seems intent on slowing down its cryptocurrency industry with more regulations and official scrutiny.

,The GMO infrastructure includes an institutional and consumer investor exchange, Z.com Coin, which was announced in May.

Formerly known as GMO Wallet Co., Ltd, GMO-Z.com Coin Co. Ltd was first announced by GMO Internet last year as a cryptocurrency wallet. However, due to the implementation of a law that brings bitcoin exchanges in Japan under national know-your-customer/anti-money laundering rules and views bitcoin as an online payment system, the company decided to launch a full-scale exchange, allowing users to buy and sell bitcoin with Japanese yen.

The platform launched with two product offerings, ‘virtual currency foreign exchange’ and ‘virtual currency trading’.

GMO Internet says the exchange is insured by Mitsui Sumitomo Kaika Kaisha Insurance Co., Ltd. to protect against cyber-attacks and theft, which was introduced to the country back in November. The exchange also features cold storage and multi-sig. Trade is open 365 days a year, 24 hours a day. The trading fee is 0 yen with no withdrawal fees, and the minimum trade will be 0.0001 BTC.

The platform launched with 500 million yen (approx. USD$4.3 million) in capital reserves, above the requirement noted in exchange regulation.