Huobi have acquired a majority stake in BitTrade, one of only 16 licensed exchanges operating in Japan. With a trading volume in excess of $1 trillion, Huobi is one of the world’s largest digital trading firms. The move will see Huobi expand their operational areas, which already include compliance teams in Singapore, Korea, Hong Kong, Australia, the UAE and Luxembourg, amongst others. Of late, they have been looking to expand with a number of high-profile acquisitions, including speculation that they are looking for a reverse takeover in order to run an IPO. Reports indicated that August 27th saw them take a controlling stake in Pantronics through a backdoor listing deal.
On the exchange takeover, BitTrade owner Eric Cheng said, “We are delighted to be partnering with Huobi, a global leader in the crypto currency industry which continues to grow exponentially. Together, we will leverage on Huobi’s global footprint, excellent management team and advanced security systems to grow Bit Trade into a market-leading position in Japan. Having a long-term partnership with an established brand such as Huobi is the right step for Bit Trade as we look to continue our rapid growth trajectory.”
Cheng only bought BitTrade a few months ago, for $49 million. The exchange was founded in 2016 and offers trading in a wide range of cryptocurrencies.
On the acquisition and subsequent plans to grow in the Japanese market, Huobi CFO Chris Lee said, “We found the right partner in Mr. Cheng who has demonstrated his capabilities as an international entrepreneur with a strong track record. Looking ahead, we will leverage on Cheng’s international network and passion for blockchain technology as we continue to expand geographically. Leveraging on Bit Trade’s leadership team and its Japanese government-approved license, this is just the beginning as we look to grow Bit Trade into the most dominant player in the Japanese cryptocurrency market.”