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Amidst Japan’s largest conventional finance and brokerage service providers venturing into cryptocurrency, online service operator Daiko Holdings Group Co., Ltd. (ダイコーホールディングスグループ) joins the increasing number with a major investment in cryptocurrency exchange Bitgate.
In a statement released by the crypto exchange, its operator SNC Co., Ltd. made a capital transfer of the Bitgate Corporation to Daiko. SNC consigned 58.1% out of its 100% stake in Bitgate, retaining a minority of 41.9% in the exchange.
With Daiko’s controlling stake in Bitgate, it is now an official subsidiary of the Daiko Holdings Group. Additionally, there are also 3 new directors appointed by a resolution of the shareholders. Two of them are senior executives at Daiko while the remaining one is the CEO of SNC.
The newly appointed executives are enumerated in the list that follows:
Established in 2017, Bitgate exclusively operates with BTC transactions. It is also one of the first crypto exchanges licensed by Japan’s financial regulator, Financial Services Agency (FSA). This was in accordance with Japan’s amended Fund Settlement Law (資金決済法) and the amended Payment Services Act (支払サービス法) that went into effect in April 2017.
Bitgate’s major stakeholder Daiko is also the latest to join the increasing number of Japanese financial services advancing from the benefit of this newly improved legislation. Different service providers have also implemented various methods in adopting cryptocurrencies.
Corporate giants like SBI Group and Rakuten launched their own crypto exchange platforms, VCTRADE and Rakuten Wallet respectively. SBI also has a joint venture with blockchain start-up Ripple known as SBI Ripple Asia.
Meanwhile, online brokerage firm Monex Group opted to acquire smaller, license-holding exchanges like Coincheck. This is due to the fact that the process of securing a license from the FSA is difficult and involuted.
A hybrid method is also utilised as another way for companies to enter the crypto industry. An example of a company that took this approach is Fisco, a non-profit organization dedicated to exploring the use of blockchains. It has already launched its own crypto trading platform some time ago before acquiring Zaif, in hopes of integrating the two exchanges.
The following developments show the improvement of crypto’s adoption in Japan relative to previous years. This can be observed with more and more Japanese finance and brokerage service providers that continue to integrate cryptocurrency into their services.