Huobi Japan Inc, the subsidiary of Huobi Group, has raised nearly 500 million Yen ($4.6 million) from a Japan-based Financial Products Group (FPG) Co., Ltd., that deals in insurance and brokerage.
Reportedly, this latest move is indicating the expansion and development of Huobi Japan-a virtual currency exchange and financial services provider. However, the proper information towards the deployment of funds still not yet disclosed.
As per the information, Huobi Japan has received an investment from the Financial Products Group (FPG) Co., Ltd, one of its business segments i.e., FPG, which is involved in tax leasing arrangement concerns, real estate, insurance brokerage, and mergers and acquisitions (M&A) related businesses.
The Press releases from Huobi and FPG have revealed that the investor company has acquired shares worth of 499,968,000 yen from the wholly-owned Japanese subsidiary of Singapore-incorporated Huobi Asset Investments on Oct. 25. Although, the percentage of FPG share’s ownership and the number of acquired shares from Huobi Japan hasn’t made public.
Huobi Japan & FPG Collaboration To Lift Crypto Trading
FPG through the document, communicated about the forthcoming cooperation, on digitized securities and the potential which it sees in the company, and expecting it to provide new financial assets and innovative payment methods/solutions in the country, to make the surroundings more robust and technology-oriented.
The detail further added, “FPG Group anticipates the possibility of collaboration with Huobi Japan for contributing to the digitization of the Japanese securities market by combining the FPG Group’s know-how as a financial instruments business operator with Huobi Japan’s blockchain technology.”Source: FPG Document
At present, Huobi Japan is offering Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), and Monacoin (MONA) through its listing.
Huobi Pulled Off After Crackdown
Huobi Group is a well-established and major cryptocurrency trading & asset management service provider to millions of users in 130+ countries. Its native token named Huobi Token, which is ranked 16th, in terms of market capitalization, as per CoinMarketCap data.
Huobi first founded in China in 2013 and later on shifted its headquarter in Singapore due to the major clampdown on native cryptocurrency exchanges by Beijing’s market regulator- The China Securities Regulatory Commission (CSRC) during September 2017.
Huobi Japan was founded in 2016, and during 2018 it acquired a cryptocurrency exchange named “BitTrade”. As a result, in Jan 2019, the company changed BitTrade‘s name to Huobi Japan and launched a fully operational platform in Jan 2019. During that time Huobi Japan was among the first batch of 17 licenses to receive registration under Japan’s Financial Services Agency (FSA) after complying with the mandatory regulatory regime.
Since April 2017, licensing for the operation of any crypto exchange has become obligatory in Japan. The rules graduallyhave become more rigid in the wake Mt. GoxHack and a $532 million worth of Coincheck’s hack which took place in 2011 and Jan 2018, respectively.
In fact, in April, Huobi Japan and Fisco cryptocurrency exchange have gone through an incursion by the FSA, due to the changed management. To keep a check, on the legal compliance and related customer protection operational measures are moving as per the prescribed rules and regulation, the regulator invested them. The financial technology related news was leaked by Reuters on April 23, 2019.
Reportedly, this year, Coincheck in Jan and LVC Corporation in Sep gained FSA approved licenses to run their platforms in Japan.
Tags: China, Huobi, Japan, Securities, Trading, Regulation, FPG Group, Coincheck, Mt. GoxHack, FSA, Technology, License, Approval, Cryptocurrency exchange, Japan, Singapore, BitTrade, Regulators, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), Monacoin (MONA), CSRC, Mergers and Acquisitions, Insurance, Bokerage, Investment, Raise