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Crypto exchange BitMEX and a refined French wine retailer are working together to acquire a majority stake in BitOcean, a Japanese but still inactive encrypted exchange. Cointelegraph Japan reported on the potential partnership on December 21st.
Madison Holdings Group, which is currently listed on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange, appears to be planning to acquire a 62.7% stake in BitOcean for 1.68 billion yen ($ 15.12 million) – paid to current third-party stakeholders – plus an additional $ 15 million of additional costs. The agreement, still incomplete, according to reports, will be made through a subsidiary, Madison Labs, as reported by Madison to GEM at the beginning of this month.
BitOcean is a cryptographic exchange that is officially registered with the Japanese regulatory agency, the Financial Services Agency (FSA), even if it has not yet started its trading services.
The agreement of BitOcean fits in particular in parallel with the plans for the acquisition of the majority of Madison Labs by the parent company of the main BitMEX encryption platform. According to a report by the English-language South China Morning Post (SCMP) in Hong Kong on December 26, HDR Cadenza Management – a subsidiary of BitMEX owner HDR Global Trading – is considering the acquisition of a 51% stake in Madison Labs, at a cost of $ 17,14 million.
As reported by CT Japan, if and when both transactions are finalized, the move would make BitMex a shareholder and an indirect shareholder in Madison's Crypto Trading voice. CT Japan writes that Madison's joint incursion into BitOcean with HDR will aim to exploit the technology and know-how accumulated by BitMEX regarding the creation of an enterprise-level encrypted trading infrastructure .
BitMEX currently offers encrypted futures and open-ended contracts, as well as leveraged trading – whose regulation is currently under discussion within the country, as further noted by CT Japan.
Raymond Ting Pang-wan, president of Madison, told SCMP that the company opted for an investment in BitOcean due to its licensing status and the country's solid encrypted regulatory framework. Ting also told SCMP that while the Madison wine business is stable and profitable, it is difficult to scale by observing:
"This is why we need to diversify financial technologies and cryptocurrency activities to achieve a better return for our shareholders."
He also added that when crypts and blockchains become "more popular", entering the industry will allow the company to "expand" its source of income.
As previously reported, Japan has both a self-regulatory body, the Virtual Currency Exchange Association (JVCEA), and an in-depth procedure for cryptocurrency operators to acquire a license from the FSA. The organization has exerted a heightened supervision of the industry since the January record of $ 532 million hack of the Coincheck domestic trading platform.
While a license was mandatory for all cryptographic power plants operating in Japan after the amendment of the law on payment services in the country in April 2017, the FSA continued to increase the requirements for applicants throughout 2018; 200 operators are currently awaiting a license.
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