Despite the bear market, the crypto exchange Huobi continues to expand diligently. This time is an investment to Japan. And despite the bear market. An Analysis.
As the crypto-exchange Bit Trade on 12. September in a press release, announced that it has Huobi a majority stake in Bit Trade purchased. The goal of the investment is, (to expand to Japan). Huobis investment is also important for other reasons.
The first remarkable thing about the investment is the Timing. Even if we are in a bear market, the company is not deterred. So Huobi. After an Expansion to San Francisco is considering Huobi, according to Reports in April, in addition to a branch in London to open. In April Huobi in addition, the branch Huobi Pro in South Korea opened. The path to Japan is a further step in Huobis expansion of the Market.
The great importance of Huobi and Bit Trade
Secondly, the importance of Huobi and Bit Trade in the crypto-scene is important. Both have great value. On the one hand, Huobi is with the founding in 2013, one of the oldest trading platforms. On the other hand, is measured by the volume of trade is one of the largest stock exchanges in the first place (at the time of publication she was the third measured the biggest on the 24-hour Trading volume). As it seems, wants to Huobi expand this space.
Japan as an important market
Bit Trade is with the founding year of 2016, although considerably younger, but only one of the 16 by the Japanese financial Supervisory authority (FSA) authorised stock exchanges. And the interest of the crypto exchanges to Japan is large. In August, reported Bitcoin.comthat around 160 exchanges a FSA licence advertised. Of these, only ten percent received a license. These regulations have their origin in the Coincheck-Hack in January of this year. After this NEM Token to the value of around 430 million euros of Coincheck were stolen, started with the FSA, with its increased regulations. This showed in March, the first follow. First of all, forbade the FSA two crypto-exchanges (temporary) trade. A little later, then a further five exchanges in their application to an FSA license withdrawn. In September, has reinforced the FSA’s requirements for cryptographic exchanges.
Huobis market entry strategy: acquisition instead of bureaucracy
Finally, it is also Huobis market entry strategy is remarkable. Instead of going the tedious way of a own license deals Huobi, this bureaucracy, due to the acquisition of an already licensed platform. A similar strategy drives Rakuten, for example. Rakuten (one of the largest Internet companies in the world, to its Portfolio, including the Viber-Messenger) at the end of August, which is also authorized by the FSA stock exchange everybody’s bitcoin accepted. As it seems, developed in Japan to a hard-fought patches for crypto exchanges.
Huobis investment in Bit Trade is a good mirror of the current crypto situation; in Spite of falling rates, the activity of the company is increasing, both in industry as well as the authorities. One can speak of an institutionalization or a “Grown-up”. Whatever you call it: There are still many (geographical) areas in the crypto world, waiting to be served. Competition is not excluded.
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