Rakuten, a big Japanese e-commerce company which has a market capitalization of over $12.5 billion, has uncovered a 265 million yen ($2.4 million) sale to gain local crypto exchange Everybody’s Bitcoin, in a declaration published August 31.
The deal, which will supposedly be settled by October 1, has been made by means of Rakuten’s backup, Rakuten Card Co. Ltd. It depends on a stock purchase agreement between the last mentioned and Everybody’s Bitcoin parent company Traders Investment.
The present declaration shows that Everybody’s Bitcoin announced a net loss of around $444,200 in the financial year ending March 30, 2018.
Rakuten says it has been “considering entry into the cryptocurrency exchange industry” as it believes “the role of cryptocurrency-based payments in e-commerce, offline retail and in P2P payments will grow in the future.”
The firm has additionally said that the acquisition comes in light of requests from a developing number of clients, specifically foreign exchange clients of its securities subsidiary, who have been requiring the arrangement of a cryptocurrency exchange service.
The deal has been disclosed only four months after local authorities issued a business improvement order against Everybody’s Bitcoin following on an on-site assessment by Japan’s Financial Services Agency (FSA).
The investigation had apparently uncovered inadequacies in the exchange’s management control system and requested the trade to actualize an action plan to control money laundering and financing of terrorism and to focus on a scope of other system hazards, business and book management improvement. Rakuten says the securing will help the exchange to fulfill the regulator’s necessities for getting an official working permit.
Not long ago, Rakuten declared plans to launch its own cryptocurrency as a component of another blockchain-based loyal program. As early as 2016, the organization had obtained the licensed innovation resources of Bitcoin payment processor BitNet and additionally opening its Rakuten Blockchain Lab to investigate applications for blockchain in e-commerce and fintech.