Tokyo-based cryptocurrency Spindle has announced it is withdrawing from Japan and re-establishing in London, amidst rumours of a police investigation in Tokyo into its alleged unregulated token sales.
The company, Black Star&Co., saw its Spindle token rise to prominence with the high profile backing of Japanese celebrity Gakuto Oshiro, also known as Gackt. When it relocates to London, the company will become known as Black Star Capital Ltd.
Discussing the move to news.bitcoin.com, Gackt said the decision to relocate was motivated by the need to find a more suitable regulatory climate for a cryptocurrency business.
“Black Star&Co. decided to move to London, where it originally started, because [in Japan] it takes a tremendous amount of time for various procedures to take place. [They decided] it would not be suitable for a cryptocurrency business, which essentially needs to be speedy, to remain in such an environment,” according to the Japanese celebrity.
However, rumours around a possible police investigation into unregulated token sales in Japan have raised suspicions about the motivations and the timing of the move.
Black Star has been no stranger to controversy over the last few months. In January, the firm was implicated in a political scandal concerning a government minister who was accused of exerting undue pressure on the financial regulator over its investigations into the token.
This was followed up with a warning for Black Star in January, and subsequent allegations in July that the company had violated settlement laws. This follows advice issued by the FSA in February that the firm should stop selling its Spindle tokens.
In spite of the advice, the Spindle altcoin was listed on a number of international exchanges, where it lost significant value in early trading. However, initial investors, including Gackt, immediately sold their holdings, realising significant gains and rousing even more suspicion amongst early backers.
Deflecting the criticism, Gackt told local media that the problems doing business in Japan were the result of a lack of understanding of the cryptocurrency space.
“Japanese people are extremely dependent on statutory currencies issued by the country and the nation’s administration also has a low understanding of cryptocurrency itself. It is actually safer for investors to put Spindle in an infrastructure management where it can expand, grow and thrive,” Gackt told the Japanese crypto news outlet.
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