In a press release on June 28, LINE announced the launch of their cryptocurrency exchange. The Japanese messaging company confirmed that the exchange will be launched in July in collaboration with LVC Corporation. According to the release, the exchange will handle at least 30 cryptocurrencies on its platform and will be available in every country except Japan and the U.S. LVC corporation is part of the LINE Group and will be mandated with operating and developing LINE’s blockchain and cryptocurrency business. BITBOX, the name of the cryptocurrency, will work through LINE Tech Plus PTE. LTD, another company under the LINE Group which will help the exchange work through rules and regulations of respective countries.
Decision To Exclude Japan
For some time Line has been in talks with regulators in Japan over the launch of the cryptocurrency exchange but it seems it has not borne fruit. The Financial Services Agency has been aiming to make the industry airtight with security regulations but their implementation has been pushing a lot of the exchanges away. The Japanese social messaging company announced in January the launch of a cryptocurrency exchange for its 200 million active users. However, the Japanese government had begun a licensing scheme from 2017 in the wake of the $530 million Coincheck heist which was making it hard for companies like LINE to start crypto exchanges. At last, it seems the company has given up and will be proceeding with the launch without Japan’s involvement.
The company has also confirmed that BITBOX will be purely a crypto to crypto platform and will not handle fiat. Exchangeable cryptocurrencies will include Bitcoin, Ethereum, Bitcoin Cash and Litecoin. In total, there will be at least 30 cryptocurrencies. From the launch date, BITBOX is reportedly planning to offer zero trading commission to new users, an initiative that will see customers flocking to the platform. Henceforth the spread will be 0.1%. LINE says it plans to create a friendly and innovative financial service as it aims to close the bridge between people and money.
As the society heads toward cashless and wallet-less future, LINE will be actively involved in undertaking initiatives and creating systems to accelerate the development of its businesses and reinforce its services as it strives to become a leader in the FinTech business.
As LINE and other exchanges distance themselves from Japan, several others have made the commitment to operate in the country. Recently, SBI Group launched a crypto exchange in Japan which is now live. This has made the newly launched exchange the very first exchange in Japan to be backed by a bank. The exchange, VCTrade, is currently only available to users who pre-registered before the launch but efforts are underway to launch the platform for all users.
- Japanese messaging giant Line is launching a Cryptocurrency Exchange
- A big step forward! Korean Crypto Exchanges are now considered financial institutions!
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