In what is expected to be a confidence bolstering move, Japan’s online brokerage Monex Group announced its acquisition of cryptocurrency exchange Coincheck today, according to Nikkei Asian Review.
Coincheck, which is reeling from the recent $500+ million NEM token theft, is believed to be among the top exchanges in Japan, presenting a lucrative opportunity as crypto markets are projected to grow further.
According to reports, Monex Group will be paying ¥3.6 billion for the acquisition of Coinchecks shares, roughly amounting to over $33 million. As per the agreement, Coincheck’s existing management will step down, including the founder and CEO, Koichiro Wada and the COO Yusuke Otsuka.
After the acquisition, Monex Group’s executives will assume management positions and join the board in a bid to improve Coincheck’s infrastructure and operations, as per the observations made by the country’s Financial Services Agency.
Coincheck’s acquisition by Monex also ties in with the online brokerage’s amibitions to restore its former glory, as it started to fall behind with competition from rivals such as SBI Holdings Inc., which also obtained a cryptocurrency exchange license recently.
While the cryptocurrency market is experience turbulence today, with Bitcoin dropping under $6,600, this deal is being viewed by experts as a confidence booster, with Brian Kelly telling CNBC:
"It's a massive confidence boost; you now have a regulated public company in Japan buying into a crypto exchange. This puts a stamp of approval, and Japan is a huge driver of this market."
With Monex Group entering the arena, other brokerages can also be expected to take cryptocurrency markets more seriously and consider acquiring crypto exchanges, which, during the December/January season, minted money in fees as crypto fever reached its peak.
This article appeared first on Cryptovest
