Yet To Open Crypto Exchange BitOcean Sells Stake To Madison, a Wine Firm December 26, 2018 December 26, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsDecember 26, 2018 by Kelly Cromley

Yet To Open Crypto Exchange BitOcean Sells Stake To Madison, a Wine Firm

BitMEX crypto exchange and a fine French wine retailer are reportedly partnering to acquire a majority stake in the licensed –but still inactive – Japanese BitOcean crypto exchange.

The Madison Holdings Group, currently listed on the Hong Kong Stock Exchange ‘s Growth Enterprise Market (GEM), is reportedly planning to acquire BitOcean’s 62.7% stake for 1.68 billion yen ($ 15.12 million) — paid to existing third – party stakeholders — in addition to an additional $15 million in additional fees.

According to Madison’s submission to GEM earlier this month, the deal, which is not yet complete, is reportedly made through a subsidiary, Madison Labs. BitOcean is an exchange of cryptographs that is officially registered with the Japanese regulator, the Financial Services Agency (FSA), even though its trading services have yet to go live.

The BitOcean deal is particularly in parallel with the plans for the majority acquisition of Madison Labs by the parent company of the major BitMEX crypto trading platform. According to a report published by the Hong Kong South China Morning Post (SCMP) in English on December 26, HDR Cadenza Management—a subsidiary of BitMEX owner HDR Global Trading—plans to acquire Madison Labs’ 51% stake at a cost of $17.14 million.

If both deals are finalized, BitMEX would become a partner and indirect shareholder in the crypto-trading entry of Madison. The joint Madison foray into BitOcean with HDR will aim to harness BitMEX’s technology and accumulated know-how in establishing an enterprise-grade trading infrastructure for cryptoderivatives.

Currently, BitMEX offers crypto futures and indefinite contracts as well as leveraged trade, which is currently under discussion in the country. Raymond Ting Pang-wan, president of Madison, told SCMP that due to his licensed status and the country’s robust crypto regulatory framework, the company had opted for an investment in BitOcean.

“This is why we have to diversify into financial technology and the cryptocurrency business — to achieve a better return for our shareholders.”

He added that as crypto and blockchain become “more popular,” entering the sector will allow the company to “expand” its revenue source.

As previously reported, Japan has both a self – regulatory body, the Virtual Currency Exchange Association (JVCEA), and a thorough process to obtain a license from the FSA for crypto exchange operators. Since January this year, the organization has exercised intensified oversight of the sector with a record $532 million hack of the domestic trading platform Coincheck.

While a license has been mandatory for all crypto exchanges operating in Japan since the country’s Payment Services Act was amended in April 2017, the FSA continued to increase applicant requirements throughout 2018; up to 200 operators are currently waiting for a license.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.