Category Archives: Bit Trade

Bitcoin formula plans aggressive market entry in Japan

Despite the bear market, the crypto exchange Huobi continues to expand diligently. This time through an investment in Japan. And this despite bear market. An analysis.

The Bit Trade crypto exchange announced in a press release on September 12 that Huobi has acquired a majority stake in Bit Trade. The goal behind the investment is to expand further (to Japan).

Huobi’s investment is also important for Bitcoin formula

The first remarkable thing about the investment is the Bitcoin formula. Even if we are in a bear market, the companies will not be deterred by it. So is Huobi. After an expansion to San Francisco, Huobi reports in April that it is considering opening an additional branch in London. Huobi also opened its Huobi Pro branch in South Korea in April. The move to Japan is now a further step in Bitcoin formula market expansion.

The Importance of Huobi and Bit Trade
Secondly, the importance of Huobi and Bit Trade in the cryptoscene is important. Both are very important. On the one hand, Huobi is one of the oldest trading platforms with its foundation in 2013. On the other hand, it is one of the largest stock exchanges in terms of trading volume (at the time of publication it was the third largest in terms of 24-hour trading volume). It seems that Huobi intends to continue to expand this position.

Japan as an important Bitcoin trader market

Bit Trade was founded in 2016 and is therefore much younger, but only one of the 16 stock exchanges approved by the Japanese Financial Supervisory Authority (FSA). And the Bitcoin trader are very interested in Japan. In August, Bitcoin.com reported that some 160 exchanges had applied for an FSA license. Of these, however, only ten percent received a license. These regulations have their origin in the coincheck hack of January this year. After Coincheck stole about 430 million Euros worth of this NEM token, the FSA has started with its strengthened regulations. These showed their first effects in March. First, the FSA (temporarily) banned two crypto exchanges from trading. A little later, five more exchanges withdrew their application for an FSA license. In September, the FSA additionally strengthened the requirements for Bitcoin trader.

Huobi’s market entry strategy: Acquisition instead of bureaucracy
Finally, Huobi’s market entry strategy is also remarkable. Instead of going the arduous route of licensing, Huobi avoids this bureaucracy by acquiring a licensed platform. A similar strategy is pursued, for example, by Rakuten. At the end of August, Rakuten (one of the world’s largest Internet companies, whose portfolio includes Viber-Messenger, among others) acquired everybody’s bitcoin, a stock exchange also approved by the FSA. It seems that Japan is developing into a highly competitive market for crypto exchanges.