Wine Company Buys Stake in Crypto Exchange
29-12-2018, 03:00 39
Copyright on text and image: LiveBitcoinNews.com
BitOcean is one of Japan’s 16 fully licensed crypto trading platforms, having recently garnered full approval from Japan’s Financial Services Agency (FSA). Madison Lab – a subsidiary company of Madison Holdings – has acquired roughly 67 percent of BitOcean, spending about $30 million in the process.
Crypto Investments Remain as Popular as Ever
Madison’s chairman Raymond Ting Pang-wan explains that the maneuver was all part of the company’s attempts to diversify itself and build its investment portfolio:
“Our wine business is stable and profitable, but then it is small. It is hard to make wine trading into a very big business. That’s why we have to diversify into financial technology and the cryptocurrency business – to achieve a better return for our shareholders.”
Despite being home to two of the world’s largest cryptocurrency thefts – Mt. Gox and Coincheck – Japan is, and remains a powerful cryptocurrency hub. The country’s FSA pledged to become more involved in crypto-based operations following the Coincheck debacle in January 2018, an event that saw more than $500 million in cryptocurrency funds disappear overnight.
The FSA began issuing warnings to several cryptocurrency exchanges, claiming that they would now have to undergo a registration process to continue their operations and that they would be required to improve their safety protocols or face being shut down.
This regulatory framework and Japan’s ongoing pro-crypto attitude is why, according to Pang-wan, now was the best time to obtain a stake in the crypto arena:
“Japan represents about 20 percent of bitcoin trading worldwide. Japan and the United States are the only two markets that have a licensing system for such trading platforms. We wanted to invest in a platform that was under proper regulation.”
Crypto Investments Everywhere
In a related story, HDR Global Trading – which owns the BitMEX Exchange in Hong Kong – is now looking into purchasing a 51 percent stake in Madison Labs. The deal has not taken part at press time, though it’s estimated the purchase will cost roughly $17 million.
Unlike Japan and the U.S., Hong Kong has yet to enforce an official licensing structure for cryptocurrency-related businesses, though it’s now working on a temporary system that would slowly begin to introduce regulatory tactics.
Will a deal like this cause competing companies to invest in crypto? Post your comments below.
Image courtesy of Pixabay