E-Commerce Giant Rakuten Purchases Bitcoin Exchange Firm for $2.4 Million

via global.rakuten.com

E-commerce giant Rakuten recently announced plans to enter the cryptocurrency industry through the acquisition of a local Bitcoin exchange.

The Japanese company has entered into a share transfer agreement for a 100% stake in the Tokyo-based exchange company, Everybody’s Bitcoin. The acquisition, which cost the firm 265 million yen, or $2.4 million, is set to finalize October 1.

Everybody’s Bitcoin, referred to as Minnano Bitcoin in Japan, is one of many unlicensed cryptocurrency exchanges that received criticism from Japan’s Financial Services Agency (FSA) following the Coincheck hack that occurred last January. According to the announcement, Everybody’s Bitcoin reported a net loss of nearly $444,000 in the fiscal year that ended in March.

Through the acquisition, Rakuten plans to assist the exchange in maintaining its internal systems through an effort to meet with Japan’s requirements for obtaining a proper license. The deal comes following a previous report that details Rakuten’s interest in launching its own cryptocurrency as a means of expanding its global user base.

Rakuten believes this acquisition will increase P2P payments and crypto payments to offline retail outlets in the future, adding, “In order to provide cryptocurrency payment methods smoothly, we believe it is necessary for us to provide a cryptocurrency exchange function.”

The e-commerce company initially began accepting Bitcoin payments in 2015 following its integrated with United States payment processor Bitnet, which has since been acquired by Uphold.

More: Announcement of Acquisition of everybody’s bitcoin Inc.
Similar: Japanese Messaging Giant LINE Launches Its Own Cryptocurrency and Blockchain

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