Japanese E-Commerce Giant, Rakuten, Gets Nod of Approval by FSA to Launch Crypto Exchange
Rakuten, the e-commerce giant and Japan's Amazon has completed the registration of its cryptocurrency exchange Rakuten Wallet that will be going live next month, as per the press release of the company on March 25.
The official announcement reads:
“We are pleased to announce that our registration with the Kanto Finance Bureau has been completed as a “virtual currency exchange company” based on the law.”
Later last year, the company had acquired Everybody’s Bitcoin that reported a loss of over $444k in the fiscal years ending March 2018. The deal of 265 million yen ($2.4 million) has been made via Rakuten’s subsidiary Rakuten Card Co. Ltd. that the company reported came from the growing demand from the customers.
At that time, Rakuten said, it has been “considering entry into the cryptocurrency exchange industry” as they think “the role of cryptocurrency-based payments in e-commerce, offline retail and in P2P payments will grow in the future.”
Japan Getting Back into the Game
Rakuten Wallet, which is following several other major Japanese tech players in making an entry into the crypto exchange market, has renamed the platform earlier this month on March 1.
“Rakuten Wallet will contribute to the sound growth of the market as a virtual currency exchange company, and will further enhance security and provide enhanced services so that more customers can use it safely and with confidence. We will do our best,” the company said in its report.
The company has already officially restructure the management system that involves strengthening the internal control systems and business management along with formulating a business improvement plan.
Everybody Bitcoin will cease its operations under its current guise at the end of March and the new service account will be launched from April.
Last April, Everybody's Bitcoin received a business improvement order from the financial regulators of Japan as part of the investigations that followed the half billion dollar hack of Coincheck, a Japanese cryptocurrency platform.
A number of exchanges received such orders that were based on data handling and security issues. Since then, FSA approved crypto exchanges’ list has grown to 19.
Coincheck itself secured a lifeline from Monex Group, an online broker in a buyout of $33 million in April. Another big name in this list is Yahoo! Japan whose local subsidiary Z corporation acquired 40 percent stake in crypto exchange TaoTao that would start its operation in May.