News

Monex Looking at Buying Coincheck

0 Comments

Financial services firm Monex Group is looking at buying Coincheck, the Japanese cryptocurrency that was hacked in January.

Monex confirmed reports about its interest in Monex but said it was yet to make a decision on the purchase.

Coincheck logo

Monex has lately been turning its interest to cryptocurrencies even setting up the Monex Cryptocurrency Lab to study the industry’s future and offer advice to investors. Monex is the third largest online brokerage firm in Japan by customer base. Its market capitalisation now stands at 120  billion Japanese Yen according to Bloomberg.

SBI Holdings, a Monex rival already acquired a license for a cryptocurrency exchange although it is yet to launch a platform.

Linecorp, a mobile app operator has also applied for a license to operate a cryptocurrency exchange. Japan accounts for a huge part of cryptocurrency transactions worldwide.

Deal Worth Billions

The deal could be worth billions of Yen according to a report by Nikkei. The outlet reports that an announcement could be made as early as this week. If sealed, the deal will see the broker access the huge Coincheck customer base and bring it closer to other online securities brokerages like GMO Internet.

The markets seem to be responding very well to the announcement. Monex’s shares surged by a whopping 23% to trade at 424 yen.

According to the report, the current CEO will be replaced and a plan has already been charted with the regulators and major investors.

$530 Million Worth of Tokens Lost

Coincheck lost $530 million worth of NEM tokens in January after a successful hacking. The attack saw authorities take a tougher stance on cryptocurrency exchanges with lax security measures. Details of the hacking have so far not been released by the exchange.

NEM

At least six exchanges have so far been penalised for having inadequate controls. At least two of them have elected to voluntarily shut down after being issued with improvement orders.

One of the largest cryptocurrency exchanges in the world – Binance was recently ordered to shut down operations in the country for operating without a registration license. Although its CEO said the company was still negotiating with the FSA, plans are underway for the exchange to transfer operations to Malta – a nation keen on developing a crypto-friendly legal framework.

Coincheck recently reported that it has completed reimbursing its customers for their lost tokens. The money was drawn from internal funds.

Leave a Reply

avatar
  Subscribe  
Notify of
close-link

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.