SBI Holdings Invests in Unlicensed LastRoots Crypto Exchange, Faces Regulator Pressure
SBI Holdings Invests In Unlicensed Crypto Exchange Once More
Investment sector of Tokyo-based Strategic Business Innovator (SBI) Group, SBI Holdings plans to invest yet again into a cryptocurrency exchange that supposedly has not obtained the necessary licenses. In particular, the investment will be made to a crypto project that remains skeptical in Japanese financial regulator’s books.
According to a press release on Monday, August 20, the investment is made to LastRoots, an advertisement service and cryptocurrency exchange platform. The decision to invest stems from wanting to increase SBI Holdings’ stake in the firm. Furthermore, the contributed sums will supposedly go towards LastRoots’ goal of improving its internal systems, which is a compulsory step to become a registered platform.
The Japanese Financial Services Agency (FSA) has been on working towards assessing crypto exchanges in the country and has previously come into contact with LastRoots. In doing so, the FSA advised the crypto exchange on April stating that changes need to be implemented. More specifically, the agency felt that LastRoots lacked measures that would protect its users from crypto hacks and thefts.
Based on Coin Desk’s report, SBI Holdings plans to get right down into business to help LastRoots flourish. It has been revealed that the former will be providing some of its employees to advise and create an infrastructure that prevents money laundering and any tied risks to the latter.
SBI has been involved in different investment strategies ever since the FSA permitted the firm to initiate trading services via its platform. In addition to the contribution to LastRoots, the investment firm also formed ties with a crypto wallet, CoolBitX and tokenized asset offerings (TAOs) provider, Templum.
Do you think SBI Holdings is taking a risk in putting funds into an unlicensed crypto exchange? Comment below.