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Three Japanese Crypto-companies Want to Trade Securities Too

Tim Alper
Last updated: | 2 min read

Three of the biggest names in Japan’s cryptocurrency exchange industry are hoping to branch out – into the conventional finance sector.

Source: iStock/yongyuan

Per Nikkei, BitBank, Liquid operator QUOINE and Remixpoint, the operator of the BitPoint exchange, all want to launch securities trading operations. The trio is hoping to win official approval from the country’s top financial and cryptocurrency regulator, the Financial Services Agency (FSA), which governs both securities and cryptocurrency trading operations. All three currently operate FSA-licensed crypto exchanges, and represent a significant share of the domestic market.

QUOINE is hoping to acquire a banking license, and is moving to establish a holding company that will comprise a separate securities subsidiary.

Remixpoint, meanwhile, has already established a securities arm, and is currently seeking FSA approval in order to begin business. Per the report, if the FSA gives the company the green light, the company may begin trading securities “by the end of 2019.”

BitBank, which last year struck a deal with several major Japanese banks to allow real-time token-to-yen withdrawals, says it is also “preparing to register its securities business.”

An employee at a rival Japanese exchange who wished to remain anonymous told, “If the companies are granted approval by the FSA, the move will be a massive departure for them, as it’s all been crypto, crypto, crypto for them for the past few years. Perhaps they will look to integrate securities and crypto trading somehow. Regardless, it’s a pretty proactive and positive step.”

However, it would not be the first time an exchange offers both cryptocurrency and traditional asset trading. For example, major social trading platform eToro offers stocks, commodities, currencies, exchange-traded funds and indices alongside digital assets.

Also, some other trading platforms provide exposure to securities via other means. In January, a Belarus-based exchange launched its trading platform for tokenized securities. It allows users to place bets on the price movements of traditional assets – such as a share of Apple or gold – using cryptocurrencies like Bitcoin or Ethereum. In the same month, another cryptocurrency exchange called DX.Exchange launched stock trading of giant companies. The exchange offers digital tokens based on share of 10 Nasdaq-listed companies, where each token is backed by a share and holders will be entitled to the same cash dividends, even though the companies themselves aren’t involved.