The Japanese cryptocurrency exchange BitTrade announced on November 22, 2018 that it will end service for its trading system on January 18, 2019. The move is part of a capital and business alliance with Huobi Japan Holdings Limited, a subsidiary of Huobi Global Limited, which is developing cryptocurrency exchange businesses worldwide.
True Joyful Limited, BVI, a major shareholder of BitTrade’s parent company FXTF Asset Investments Private Limited, transferred 100% of its shares to CEO Chris Lee of Huobi Japan Holdings in September this year, which substantially shifted management rights to Huobi Japan Holdings.
New account registrations for BitTrade are expected to be suspended on November 30, 2018, with suspension of deposits to follow on December 14, orders and transactions on December 27, and withdrawals and logins on January 18, 2019. The Huobi Group’s platform, which is currently under development, is scheduled to open for Japanese customers after January. Details regarding the new system are likely to be announced soon.
The Huobi Group had been operating Huobi, China’s largest cryotocurrency exchange, for more than four years. However, the cryptocurrency exchange was forced to close in China at the end of October 2017 due to strengthening of regulations on cryptocurrency transactions and ICO fundraising by the country’s financial agencies. A majority of other major cryptocurrency exchanges aside from the Huobi Group have been moving their bases out of China due to the regulations implemented last year.
At present, the Huobi Group is developing the cryptocurrency exchange Huobi Pro, as well as expanding businesses such as digital asset trading, information and survey services, and cryptocurrency wallets in regions including Singapore, Hong Kong, and South Korea. The business tie-up with BitTrade has made it possible for full-scale use of Huobi’s trading system in Japan starting from next year. The Huobi Group also announced in December 2017 that it concluded a basic agreement for a capital and business tie-up with SBO Holdings, Inc. <8473>.
Chinese cryptocurrency exchange businesses which have left China to expand their services globally are expected to continue entering Japan’s market in the near future. Other exchanges are also expected to make their entry into Japan next year, such as Coinbase, the largest exchange in the US, and there is increased focus on whether competition between these newcomers and currently existing Japanese exchanges will garner more cryptocurrency trade activity in Japan.
*This article was written by Fisco