Business 16 April 2019

Dan Taylor

Japanese fintech firm reverses crypto exchange plans due to bear market

A leading Japanese fintech firm has said it no longer intends to launch a crypto exchange, amid concerns about the underlying health of crypto markets, according to a Cointelegraph report.

Money Forward, Inc., which runs one of the country’s most popular apps for personal and household budgeting, had previously set out plans for a crypto media service, a crypto exchange, and a separate system for remittance and settlement using digital cash.

However, with markets still continuing to languish compared to expectations in 2019, the firm has decided to indefinitely postpone its plans.

In an announcement published by the firm, Money Forward said its board of directors had decided to cancel its application for an official registration of the exchange, citing poor performance over the first quarter of 2019.

It stated, “The virtual currency market has cooled rapidly and the downside risk of profitability has been increased by continuing the business.”

The announcement also reflected on concerns around hacks, and the prevalence of money laundering through crypto exchange.

According to the directors, the costs of setting up consumer protection systems while ensuring a convenient experience for traders were now prohibitive, against ongoing challenges in the crypto bear market.

As part of the announcement, the firm confirmed it would also be halting service provision through its Onbit platform at the end of May, despite a commitment to continue to research blockchain technology.

The news follows on from Money Forward, Inc. become a tier 2 member of the Japan Virtual Currency Exchange Association earlier this year, seen as a precursory step to launching as a registered exchange in the country.

With the announcement, Money Forward, Inc. becomes the latest casualty of the ongoing struggles in crypto markets, led by the decline of Bitcoin Core (BTC).

As investors flee from the legacy cryptocurrency in increasing numbers, the effect on crypto prices more broadly continues to cause problems for industry operators. A number of mining firms, for example, have been forced to shut down facilities and lay off staff, while a number of crypto exchanges have filed for bankruptcy.

With the latest news, Money Forward looks to be attempting to steer clear of these difficulties altogether.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

The Bitcoin Vision: Episode 10

Business 18 April 2019

The Bitcoin Vision: Episode 10

Founding President of the Bitcoin Association Jimmy Nguyen is back in London for this week’s episode of The Bitcoin Vision, and he’s reunited with his crew who are equally excited about BSV’s latest big wins.

Read More
Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack

Business 18 April 2019

Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack

Dr. Craig Wright files formal libel claim against Bitcoin podcaster Peter McCormack, who publicly accused Wright of fraud over Satoshi Nakamoto identity.

Read More
Jack Liu responds to hasty BSV delistings, launches BSV-powered exchange & wallet

Business 18 April 2019

Jack Liu responds to hasty BSV delistings, launches BSV-powered exchange & wallet

Delisting Bitcoin SV from exchanges has inspired Jack Liu to start trading on his new BSV-powered exchange, FloatSV, earlier than expected.

Read More