Crypto Exchange Huobi Acquires Majority Stake In Japan’s BitTradebr>
Huobi Japan Holding, a wholly owned subsidiary of cryptocurrency exchange Huobi, has agreed to acquire majority stake in Japanese crypto exchange BitTrade.
BitTrade is one of 16 crypto exchanges licensed by Japan’s Financial Services Agency (FSA). In June of this year, BitTrade was acquired by Eric Cheng, founder and CEO of Singapore-based Sevens Group of Companies, for S$67 million ($50M USD). At the time, Cheng claimed that he was the first foreigner to own a 100 percent stake in an FSA-regulated crypto exchange.
In an announcement on Wednesday, Huobi said that its subsidiary has signed an agreement with Cheng to acquire a controlling stake in BitTrade for an undisclosed sum. Both companies intend to aggressively scale up the platform to provide more professional and compliant services, while enhancing its international user-friendly experience.
“Together, we will leverage on Huobi’s global footprint, excellent management team and advanced security systems to grow BitTrade into a market-leading position in Japan,” said Cheng. “Having a long-term partnership with an established brand such as Huobi is the right step for BitTrade as we look to continue our rapid growth trajectory.”
Launched in 2013, Huobi is the world’s third-largest crypto exchange by trading volume. Last year, the company moved its operations from Beijing to Singapore, following China’s crackdown on crypto trading.
Chris Lee, Board Secretary and Chief Financial Officer at Huobi, said that leveraging on BitTrade’s leadership team and its Japanese government-approved license, this is just the beginning as they look to grow BitTrade into the most dominant player in the Japanese crypto currency market.
“We found the right partner in Mr. Cheng who has demonstrated his capabilities as an international entrepreneur with a strong track record,” Lee said. “Looking ahead, we will leverage on Mr. Cheng’s international network and passion for blockchain technology as we continue to expand geographically. We strongly believe in the synergies we can create through continued investment into R&D, and compliance, backed by our world class security and local operations teams across the globe.”
Last month, Huobi acquired controlling stock interest in Hong Kong-based Pantronics Holdings, an electronic products manufacturing firm. Huobi intends to start new blockchain related businesses using this entity.