Madison Holdings Group is poised to acquire a major stake in the Japanese cryptocurrency trading platform BitOcean in collaboration with Crypto exchange BitMEX.
Madison is going to purchase 67.2% of BitOcean from private third parties for about $15.12 million. At the same time, the winemaker will also disburse $15 million in distinctive fees.
BitOcean is a cryptocurrency exchange officially registered with Financial Services Agency (FSA), Japanese regulator. The contract particularly comes alongside each other to stratagems for Madison Labs’ larger part accretion by BitMEX.
BitMEX subsidiary, HDR Cadenza Management plans to acquire a 51% share of the winemaker company costing $17.14 million. In case the agreement got finalized, the procedure will make BitMEX a partner as well as secondary stakeholder Madison’s cryptocurrency trading account.
According to a Madison Holdings Group chairman Raymond Ting Pang-wan, the agreement is part of the firm’s expansion scheme.
“Our wine business is stable and profitable, but then it is small. It is hard to make wine trading into a very big business. This is why we have to diversify into financial technology and the cryptocurrency business – to achieve a better return for our shareholders,” Pang-wan emphasized.
He also generalized that Japan is a specifically suitable landing place for a crypto trading platform since it embodies around 20% of worldwide bitcoin trading. The winemaker company preferred to invest in BitOcean because of its licensed status and the nation’s strong cryptocurrency regulatory structure.
Japan has a self-regulatory organization, the Virtual Currency Exchange Association (JVCEA). Besides, it has a comprehensive measure for cryptocurrency exchange operators to obtain a license from the FSA. The system has carried out extreme control of the sector since the $532-million Coincheck hack, a domestic trading platform, this January 2018.
Meanwhile, the Japanese Yen is about to outperform the US Dollar. According to Coinhills’ data, the yen is turning to be Bitcoin traders’ solid choice.