Giant cryptocurrency exchange Huobi Japanese unit has raised 500 million yen ($4.6$ million) in new equity funding. In an announcement dated 25th October 2019, Huobi Japan stated that it has issues “new shares” to the Japanese financial services group Financial Products Group(FPG) Corporation for raising 499, 968, 000 yen using the third-party allotment rule.
Following the equity funding, the company stated that the fresh capital would be used in expanding its business in Japan by providing a “safe, secure, and customer-oriented” financial services platform. The funding will also be used to digitize the securities market of the country using decentralized ledger technology (DLT).
Part of the translated statement read:
“[We are] aiming to contribute to the digitalization of the Japanese securities market by integrating the company’s professional financial business with our security-focused blockchain technology to provide new financial assets and payment methods, We are confident that we can create more abundant, safer and more reliable services for our customers.”
Huobi’s Huobi’s Entry to Japanese Crypto Market.
Japan’s Japan’s cryptocurrency regulations greatly favor the growth and expansion of cryptocurrency startups. In this regard, Huobi’s Huobi’s entry into the Japanese crypto market was an easy one. Huobi Japan was launched as a full compliant entity after it bought a majority stake in BitTrade, a Japanese crypto exchange.
Before the takeover, BitTrade already held the mandatory license from the Financial Services Agency (FSA) in Japan to operate the crypto exchange making Huobi’s Huobi’s entry smooth as well.
How is Huobi Japan Planning to spend funding?
The majority of the funding will be used in tokenizing Japan’s Japan’s securities market using decentralized ledger technology (DLT). This will be achieved by integrating the company’s professional financial business understanding of their technology to provide new financial assets as well as payment methods.
Huobi Japan users are expected to enjoy safer and more reliable services following the funding. Many cryptocurrency startups have increased their investment in Japan’s Japan’s blockchain technologies, which is good for the growth of the sector. Huobi Japan has also hinted that it may be looking to invest in the securities market.
A Hard Run for Huobi
Huobi was originally based in China but migrated to Singapore after the Chinese government set up harsh cryptocurrency regulations. Huobi is currently looking at global expansion after establishing itself in Singapore.