Gate.io Buys Crypto Exchange Coin Master, Seals Return to Japan
The crypto exchange Gate.io is set to return to Japan after sealing a deal to buy the domestic trading platform Coin Master.
In a Gate.io blog post, the exchange explained that it had “acquired all of the outstanding shares of Coin Master.” It did not disclose how much it had paid for the company.
Gate.io Ready for Japanese Return?
The Chuo, Tokyo-based Coin Master launched in June 2016. Its sole shareholder was Oak Gove Technology. The platform obtained a trading permit in November 2019.
Chuo, in Tokyo, Japan. (Source: 663highland [CC BY 2.5])
In its own press release, Coin Master wrote:
“Please note that the change in shareholders will not affect the services we provide to our customers.”
The firm added that it would now operate under the name “Gate Japan.” And Gate.io wrote:
“We will provide further details on the transfer procedures for customers who have accounts on our global platform.”
Japan's hottest stock is a 139-year-old company up 430% this year https://t.co/T69L4F9VfC
— Bloomberg (@business) November 25, 2024
It also said it would provide details on “new registrations for the trading platform for Japanese residents” at “a later date.”
The company added that it would also update customers with more details about “the services offered on the platform,” and the coins it will handle.
Investors are set to face the largest supply of Japanese sovereign bonds in at least a decade as the central bank plans to shrink its balance sheet, adding to debtholders’ woes from rising interest rates. https://t.co/MOMdq6sGEb
— The Japan Times (@japantimes) December 23, 2024
Regulator’s Rules
The Financial Services Agency (FSA) imposes strict rules on the Japanese crypto exchange sector.
Only companies with FSA-issued trading permits can operate in Japan. And the FSA has moved to warn and punish overseas firms that target Japanese customers.
On July 22, 2024, Gate.io announced it would “stop accepting new accounts from residents of Japan” and “gradually terminate our global services for Japanese residents.”
But taking over Coin Master means that Gate Japan can access the former’s trading permit.
Obtaining these permits has proven exceptionally difficult for overseas firms. Until recently, this meant that the Japanese crypto exchange market was still dominated by domestic startups.
Gate Japan said it now “plans to provide services in Japan through a new dedicated trading platform for Japanese residents.”
It promised the revamped platform would “comply with Japanese laws and regulations.”
Source: cryptonews.com
