Fine French Wine Retailer And BitMEX To Gain Major Stake In BitOcean Crypto Exchange
Fine French Wine Retailer Teams Up With BitMEX To Gain Major Stake In BitOcean
BitOcean is presently inactive, but that has not stopped BitMEX and Madison Holdings Group from finding value in it. Based on a report on December 21st, it looks like the two entities are working together to hold a majority stake in this Japanese crypto exchange.
Though the deal is incomplete, reports indicate that Madison Holdings Group is planning to spend 1.68 billion yen to get a 62.7% share in BitOcean. The reports indicate that the group will also spend the equivalent of $15 million in fees. If the deal goes through, it will be processed through Madison’s subsidiary – Madison Labs – based on a recent filing put through the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange.
BitOcean is presently registered with Japan’s Financial Services Agency (FSA), though it is inactive at the moment. In fact, it has not even gone live with the ability to let users trade. The decision to claim a majority stake by Madison Labs falls in line with BitMEX’s plan to set up a majority acquisition of Madison Labs.
The South China Morning Post reported on December 26 that a subsidiary of BitMEX owner HDR Global Trading, HDR Cadenza Management, has been considering a similar acquisition. The reports show that HDR Cadenza Management is interested in spending $17.14 million to purchase a 51% stake in Madison Labs.
If these deals go through, BitMEX would indirectly be a shareholder and partner with the crypto trading platform that Madison owns. CT Japan reported that the venture that Madison is taking with the BitOcean acquisition with HDR will make it possible to take advantage of BitMEX’s technology and other knowledge in establishing the right infrastructure for trading crypto derivatives.
Right now, BitMEX allows for both indefinite contracts and crypto futures, plus leveraged trading. However, the country is currently in a state of flux with their regulations in these types of transactions.
The chairman at Madison, Raymond Ting Pang-wan, had announced that the licensing and the strict crypto regulations in the local industry is what ultimately led to his interest in BitOcean. However, it is also is due to the struggle to scale Madison’s wine venture, even though they are both stable and profitable for now.
The chairman added,
“This is why we have to diversify into financial technology and the cryptocurrency business – to achieve a better return for our shareholders.” He added that “the increased popularity around crypto and blockchain will make it possible for his firm to “expand” where they can gain revenue.”
Japan’s crypto policies are handled by a self-regulating body called the Virtual Currency Exchange Association (JVCEA). This body has a strict procedure that ensures that each exchange must first receive a license for operation from the FSA. Ever since the historical $532 million hack in January of Coincheck, the organization has maintained a strict governance of the space in an effort to protect it.
Even though the requirement for licensing dates back to the Payment Services Act that was established in April 2017, the FSA has since increased the requirements that an exchange must pass. There appear to be about 200 operators with pending applications that have yet to gain approval for a license.