Daiko Holdings acquires major stake in Bitgate crypto exchange

Getting your Trinity Audio player ready...

Online service operator Daiko Holdings is the latest Japanese firm to join the crypto industry, following its investment in Bitgate cryptocurrency exchange.

Daiko has acquired a controlling stake of 58.1% of the 100% stake in Bitgate, leaving the exchange’s operator, SNC, holding the remaining 41.9%. The investment means Bitgate is now a subsidiary of the Daiko Holdings Group.

Following the announcement, new directors were appointed. Two of Daiko’s senior executives have been added to the Bitrate board of directors, along with the CEO of SNC.

Daiko Holdings now joins an increasing number of Japan’s largest traditional finance and brokerage services interested in benefiting from the new improved legislation. The development also shows improved adoption of cryptocurrency in the region relative to previous years.

A number of Japan’s largest conventional finance and brokerage services providers have ventured into cryptocurrency. In cases like the SBI Group, they are creating their own platforms. In another situation, like that of the Monex Group, they acquired smaller, license-holding exchanges like the Coincheck exchange, due to the difficulty of securing an operating license from the regulatory Financial Services Agency (FSA).

Another method used is the hybrid approach. For instance, Fisco, a company that monitors Japanese stocks and provides investment advisory, launched its own crypto trading platform some time ago. It recently acquired rival platform Zaif and plans to complete a merger soon.