Huobi, one of the largest cryptocurrency exchanges worldwide has acquired a controlling stake in BitTrade as the firm seeks to increase its global footprint. The Singapore based firm now has its presence in major cryptocurrency trading hubs including South Korea and the US.
Notably, BitTrade is one of the 16 cryptocurrency exchanges registered in Japan, and one of the largest world’s major trading centers. The move gives Huobi more foothold in the lucrative but otherwise strictly regulated Japanese market. The country has one of the most stringent regulations that require compliance with security controls and anti-money laundering rules among other things.
Getting a license to operate has subsequently become an uphill task with authorities keen to prevent a repeat of high profile attacks that have resulted in massive losses. The most notable one this year involved Coincheck from which $530 million worth of NEM tokens were stolen.
Established in China in 2013, the platform now boasts of a total volume of $1 trillion. Both scams will now focus on scaling up the platform according to a press release.
“Together, we will leverage on Huobi’s global footprint, excellent management team, and advanced security systems to grow BitTrade into a market-leading position in Japan. Having a long-term partnership with an established brand such as Huobi is the right step for BitTrade as we look to continue our rapid growth trajectory,” BitTrade’s Eric Cheng is quoted as saying.
“Leveraging on BitTrade’s leadership team and its Japanese government-approved license, this is just the beginning as we look to grow BitTrade into the most dominant player in the Japanese crypto currency market,” Huobi’s Chris Lee said.
Huobi was founded in 2013 by Leon Li and is one of the world’s leading digital asset trading platform, offering trading and investment in more than 100 digital asset pairs. According to a recent study, Huobi was reported to earn about $2,500,000 only from daily trading fees.