LINE, the Messaging Platform, Gets a License to Operate As a Crypto Exchange
LVC Corporation, the blockchain and cryptocurrency-focused subsidiary of Japanese messaging giant LINE, has been granted, a license to operate as a crypto exchange by the Japanese Financial Services Agency (FSA). So, LVC Crop will be able to offer its crypto exchange services in Japan to its 80 million active users (monthly active users).
The new platform-dubbed BitMax (not the long-serving exchange BitMEX)- will allow traders to purchase and sell more than one cryptocurrency. With CT Japan, the FSA has approved the buying and selling of 5 principal cryptocurrencies on the platform; Bitcoin (BTC), Ether (ETH), Bitcoin Money (BCH), Litecoin (LTC) and XRP.
LINE President Takeshi Dezawa also announced about the FSA registration to the Tokyo Stock Exchange. He stated:
Today, the [Financial Services Agency] FSA’s list of cryptocurrency exchange registrations was announced, and LVC was officially registered as a cryptocurrency exchange trader. As a result, we will proceed with preparations for the provision of a virtual currency trading service that can be used with the highest priority on safety and security for the domestic market.
LINE has187 million international customers per month, and an estimated 50 million customers registered its cellular cost carrier, LINE Pay. The new crypto platform, BitMax is hoping to tap this mammoth customer base.
In July of 2018, LINE introduced its Singapore-based, international user-focused cryptocurrency, BitBox — and applied for a license for its Jap FSA-approved platform BitMax. Due to the crypto alternate license necessities in Japan — caused by the modification of the rustic’s Fee Services and products Act in April 2017 — BitBox was not available for Japanese investors.
Earlier, the Japanese financial holding company Nomura also signed a memorandum of understanding (MOU) with LINE and LVC Corporation to discuss a financial business alliance about a blockchain-based venture.
Then LINE introduced its local Hyperlink cryptocurrency in summer and has since continued to expand the token ecosystem; the service-oriented blockchain, Hyperlink Chain reported. This blockchain platform additionally allows decentralized packages to be applied to Line’s messaging platform directly.
The messaging firm announced that it was aiming to develop a “token economy” around its own-blockchain, LINK Chain which will offer two tokens – LINE Point in Japan and LINK for other nations- intended to connect the users and service providers.
They also declared to launch five ‘Dapps’ (decentralized applications). These ‘Dapps’ were to be launched across platforms including “prediction, Q&A, product review, food review, and location review using social media.” LINE stated that: it “aims to flatten the relationship structure between users and service providers to promote co-creation and mutual growth.”
In June, LINE also partnered with the American cost products and services company, Visa on new blockchain and digital payment solution. The partnership concentrated on a wide range of services, including the development of new fintech solutions powered by blockchain technology which were to support business-to-business and cross-border payments, as well as alternative currency transactions.
Till March this year, the FSA Japan granted a license to only 19 cryptocurrency exchanges.
The agency had toughened its scrutiny following the $530 million Coincheck hacks in January 2018. It had also raided many exchanges which reportedly, were laundering money. So, LINE has to comply with all the upcoming FSA modifications and maintain a clean line of operations to flourish with its newly obtained license.