bitFlyer partners with Sumitomo to build real estate platform

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Less than a month after the voluntary one-year suspension of one of their subsidiaries came to an end, bitFlyer Blockchain announced on July 24 that they had partnered with the Japanese commercial giant Sumitomo Corporation on a new blockchain-based real estate platform, CNET reported. This new technology will provide a relevant platform for real estate rentals, which will be driven by smart contracts developed by a sister company owned by bitFlyer, Miyabi blockchain.

This platform will be developed as a new mobile app and will allow users to sign rental contracts using the application. The purpose of the project will be to combine almost all business rentals into one platform that is accessible through a smartphone application.

For users, it is the use of blockchain technology that is the difference-maker. Blockchain technology has greatly improved efficiency and security across a wide range of business platforms, and this is what should be provided for those involved in commercial real estate rentals. Not only will it provide an easy and efficient way to sign contracts, but do so at a lower cost.

Yuzo Kano, the managing director at bitFlyer Blockchain, explained that the project will enable all parties involved in a rental agreement to be able to complete the process quickly and easily. “It can greatly simplify the real estate rental contracts process, and the intermediary company can also reduce its significant administrative costs,” he explained.

The goal is to eventually offer a larger number of services outside of property rentals. Since both guarantees and insurance are required in these kinds of agreements, the goal is to add these services as part of the platform.

This is a big step forward for the bitFlyer brand which fully resumed operations at their crypto exchange service at the beginning of this month following a self-imposed one-year suspension. This allowed the company to be able to resume opening accounts for its Japanese clients after the Japanese Financial Services Agency (FSA) cast doubt on the company’s adherence to anti-money laundering and know your customer procedures.

In June 2018, the FSA accused bitFlyer of not imposing the proper procedures to prevent the financing of terrorism or money laundering. This came on the heels of a damning report by Nikkei, the country’s largest newspaper, which accused the exchange of lax procedures and potentially unethical behavior.

As a result, bitFlyer took the extraordinary step of voluntarily suspending the acceptance of new accounts for one year. Despite the suspension, bitFlyer Blockchain remained in operation and has continued to establish themselves as one of the leaders in Japan in the development of blockchain technology.