Bitcoin, Cryptocurrency And Blockchain News

SBI Holdings Cancels its Partnership With Huobi Group


Japanese financial services company SBI Holdings has ended its business alliance with Chinese cryptocurrency exchange Huobi Group. In December 2017, both the companies announced that they were planning to launch cryptocurrency exchanges “SBI Virtual Currency” and “Huobi Japan”. Huobi even explained the areas both companies would cover; “In addition to setting up two subsidiaries, the two sides will flexibly mobilize technologies, knowledge, and personnel to jointly develop digital asset-related businesses in Japan and Asia through mutual complementarity and strength.”

However, SBI Holdings released a statement on Friday which put an end to further developments in the story. The company stated that it won’t need Huobi’s help in developing the exchanges, as it will use internal resources. “In explaining the reasons for canceling the deal, SBI Holdings said the firm needs a system that incorporates higher levels of security and which can respond promptly to domestic and overseas regulations,” reported Coindesk.

Huobi, one of the most successful trading platforms launched in 2013, has moved to Hong Kong, Singapore, South Korea and the U.S. after China imposed bans on cryptocurrency exchanges. SBI, on the other hand, recently bought a 40% stake in the cold storage wallet CoolBitX. It also co-created SBI Ripple Asia to allow customers to easily use Ripple for various products. It has also supported XRP by listing it on the beta SBI Virtual Currencies exchange.

Meanwhile, another famous Chinese cryptocurrency exchange, OKCoin, has reached an agreement with South Korean mobile and PC games company NHN Entertainment Corp. According to Business Korea, “Under the agreement, Okcoin will provide its own trading system and NHN Entertainment will operate a domestic server and respond to customers.”

SBI’s decision may have been influenced by recent updates to the Coincheck NEM hacker attack. The Japanese Financial Services Agency (FSA) suspended two exchanges for a month while giving “business improvement orders” to five other exchanges to increase customer security.