Monex Group Considering a Takeover of Coincheck
According to Nikkei Asian Review, the Monex Group – a publicly listed Japanese financial services company, has made an offer to purchase the troubled cryptocurrency exchange Coincheck. The online broker has reportedly offered several billion yen for a majority stake in the exchange.
Monex to Help Coincheck Rebuild Its Reputation
Though there have been no official statements released by Coincheck, the deal could be penned as early as this week. Following local media reports, the news has reflected positively on the Monex Group share price, which spiked by 23 percent on the Tokyo Stock Exchange.
One of the world’s biggest exchanges by volume traded, the Japanese giant was recently hit by cryptocurrency’s biggest ever hack, with NEM worth $530 million USD stolen. It has reportedly been seeking investment partners to shore up its balance sheet ever since. In the wake of the hack, the exchange laid out a plan to reimburse users for their losses to help restore its reputation.
Japan is the most advanced cryptocurrency market in the world and the first to be fully regulated. News of the proposed Monex acquisition caused a five percent surge in the price of bitcoin. Monex is an established mainstream financial services firm.
FSA Still to Approve the Acquisition
The Financial Services Agency (FSA), a Japanese government agency that oversees the cryptocurrency sector, recently punished several cryptocurrency exchanges, including Coincheck, for failing to implement proper measures to safeguard their customers’ assets and for failing to comply with anti-money-laundering policies.
The FSA was of the view that Coincheck would be unable to manage exchange operations on its own and would require support from external entities. The acquisition still requires the approval of the FSA, which will review how the partnership might improve Coincheck’s security capabilities.
For Monex, the acquisition would offer it an entry point into the cryptocurrency space. Moreover, the financial services firm could benefit from the huge clientele base of the Tokyo-based exchange. Monex executives reportedly told Nikkei Asian Review, that the company was “considering a takeover of Coincheck, but nothing had been decided.”
If the acquisition is approved, Coincheck CEO Koichiro Wada and COO Yusuke Otsuka will vacate their posts and a new management team will take over the exchange. The new team will aim to remodel the exchange’s services.
Will Monex’s potential entry into the crypto space benefit the market? Share your views in the comments section below.
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