Japan’s biggest bitcoin exchange bitFlyer raises $1.75m

Investing | February 14, 2017 By:

Sumitomo Mitsui, Mizuho Financial Group and Dai-ichi Life Insurance Company have joined a $1.75 million funding round for Japan’s biggest bitcoin exchange, bitFlyer.

The Nikkei report explains that BitFlyer’s experience could help Japanese banks provide more secure and cheaper international wire transfers, and make them available around the clock.

Back in April 2016 bitFlyer raised another ¥3 billion in funding – the largest round of fundraising by any fintech startup in Japan ever. The firm said then that funds will be used for an acceleration of its cryptocurrency blockchain and services. That injection of capital, worth almost $28 million, was in addition to the $6.5 million it raised in 2015.

According to statements from the startup, the fundraising follows BitFlyer’s work with Sumitomo and Mizuho on private blockchain solutions aimed at providing the core infrastructure for enterprise use cases.

Notably, the funding also comes during what could be a period of increasing competition for the startup. As acknowledged in its release, legislation is slated to become law in June that would enable regulated firms to enter Japan’s bitcoin and cryptocurrency markets.