The team behind the troubled Japanese cryptocurrency exchange Coincheck has decided to sell the company to one of the largest securities trading companies in the country. Monex will provide much needed capital but will decapitate the exchange and replace its head with a more trusted figure from among its own.
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Coincecheck Shakeup
The leadership of Coincheck exchange has reportedly accepted on Thursday the acquisition bid by Japanese financial services firm Monex Group (Tokyo Stock Exchange: 8698). The final details are still being worked out between the two sides but the exchange is expected get a cash injection of 3.6 billion yen ($33.6 million).
As part of the deal, the Tokyo-based cryptocurrency exchange will undergo a shakeup of its top management in order to try and bring back clients’ trust. And Monex’s experienced chief operating officer, Toshihiko Katsuya, is expected to take control of the company as its new president, according to financial news agency Nikkei. Coincheck founding president, Koichiro Wada, and its chief operating officer, Yusuke Otsuka, are expected to leave the exchange immediately after the money from Monex comes in.
FSA License Pending
Monex Group is facing tough competition in the Japanese online securities trading market and access to cryptocurrency investments can help it attract new customers as well as retain the exchange’s existing client-base. Coincheck’s application for a license from the Japanese Financial Services Agency (FSA) is still under review but the FSA will now reportedly only decide if the exchange can qualify or not after examining its operations under the new leadership brought over from Monex.
The Coincheck exchange lost some ¥58 billion worth of NEM (about $550 million in USD) in January, when it was attacked by hackers. The exchange has since resumed trading and even reimbursed NEM customers, but it was an open secret that its owners were seeking a way out of the business. The stock price of Monex Group jumped 23% just a couple of days ago when the Coincheck takeover offer news broke.
Would Japanese clients trust Coincheck against after Monex will replace its leadership? Tell us what you think in the comments section below.
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