The Surge in Crypto Revenue
In recent times, it seems that Japan’s online brokerage firms have decided to ride the cryptocurrency wave rather than just watch from the shore. According to a report from Messari, these firms—SBI, Rakuten, and Monex—are seeing their revenues from cryptocurrency exchanges skyrocket. Looks like the future just became more interesting than a cat video on the internet.
Comparing Brokerages and Crypto-Native Exchanges
Messari’s report highlighted a fascinating trend: the revenues and net worth of Japan’s leading securities brokers are rapidly approaching those of their crypto-native counterparts. It’s as if the online brokers borrowed the magic wand from a wizard and decided to transform into crypto titans themselves. The time for mere online trading seems to be long behind us!
Aiding the Growth: Japan’s FSA
Allow us to shine a spotlight on Japan’s Financial Services Agency (FSA)—the regulatory body that’s been paving the way for inclusive and flexible crypto regulations. With 26 licenses for digital currency exchanges issued since regulations began in April 2017, Japan is turning into a digital asset haven. It seems the FSA has made it their life’s mission to ensure that crypto innovation flourishes. How delightful!
Institutional Interest Peaks
It turns out that the buzz isn’t only coming from brokers; institutional interest is humming in the background! Large asset managers are clamoring at the gates of Japanese lawmakers, eager for the green light to expand their crypto offerings—think custody solutions and exchange-traded funds (ETFs). Imagine banks waiting in line like kids waiting for ice cream—it’s bound to get messy and delicious.
Spotlight on Major Players
Among the leading exchanges, BitFlyer stands out as the biggest player, boasting over $1 billion in assets and a net worth of $146 million as of August 2020. Then we have the institutional-grade Liquid exchange, which earned a spot among the top ten crypto unicorns with a valuation over $1 billion by the end of 2019. If that’s not an impressive feather in their cap, we don’t know what is!
The M&A Activity in Crypto Japan
Japan’s crypto landscape hasn’t been shy of some high-profile mergers and acquisitions. In April 2018, renowned exchange Coincheck became part of Monex Group, and in 2019, Financial Products Group put some cash in Huobi Japan. It looks like everyone wants a slice of this digital pie!
