- Line is close to receiving a crypto exchange license to run a crypto exchange in Japan
- The crypto exchange will be called ‘BitMax’
- The exchange will offer line’s very own token Link and other major cryptocurrencies like Bitcoin
- The company is also waiting for a separate banking license to further enhance services
Mobile messaging applications are now slowly integrating payments system for faster and more convenient transfer of funds, and nothing is faster than cryptocurrencies. Messaging giants like Telegram and Whatsapp are all slowly moving towards integrating their very own blockchain based payments system in their applications. Just recently Telegram announced the launch of their very own Gram tokens and is already one step ahead of their competitors. Japanese messaging giant Line is also on the same path. According to a recent report by Bloomberg, Line is close to getting regulatory approval for the launch of their very own cryptocurrency exchange.
The path is set
Line Corp., the most used messaging app in Japan has a user base of 80 million just in Japan. Reports state that the Japanese Financial Services Agency could issue the license as early as this month and exchange operations would start a few weeks after that.
The exchange will be called BitMax upon release and will provide Line’s giant user base the option to trade cryptocurrencies like bitcoin and Line’s own token Link. The exchange will run on the same technology as BitBox, a Singapore-based crypto exchange from Line launched last year for international users. BitBox has been deprived of Japanese users due to licensing issues.
The company has seen a 4.6% rise in shares after the report was published. The company is still on the wait for a banking license that will allow better integration of cryptocurrencies in their native application and other services like online shopping. This license, however, won’t be issued until next year according to one of the spokespersons. The company, however, plans to step foot into the field of stock brokerage with Nomura Holdings Inc. and also banking services next year with Mizhuo Financial Group Inc., according to Shin Jung-ho co-Chief Executive Officer. So far this year, only 19 cryptocurrency exchanges have been given regulatory clearance in Japan from the FSA due to the strictness of regulations after the $530 million CoinCheck hack in 2018.
Line expanding into fintech
The company that started as a simple messaging application has evolved to something much bigger. Moving into the Fintech space has turned out to be really profitable for the firm. Earlier this month the company’s digital wallet Line Pay, partnered with Visa to create various new financial services for their users some of which includes blockchain-based solutions, cross-border payments, and “alternative currency payments.”