Japan’s Monex Pays USD 33.6 Million for Coincheck Crypto Exchange

Coincheck made a profit of USD 4.4 million on sales of 722 million for fiscal 2016/17.

by Coins.Online
06 April • 2 min
In News

Japanese financial services company Monex Group said on Friday it has agreed to buy 100% of domestic cryptocurrency exchange Coincheck for at least JPY 3.6 billion (USD 33.6 million).

Additionally, Monex has agreed to pay Coincheck’s current shareholders up to half of the aggregated net income over the upcoming three fiscal years, deducting a certain level of realized business risk, it said in a statement.


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Coincheck made a net profit of JPY 471 million for the fiscal year 2016/17 that ended on March 31, 2017, following a breakeven result in the previous fiscal year and a loss of JPY 10 million the year before, the statement showed. The exchange’s sales soared to JPY 77.2 billion in 2016/17 from JPY 8.5 billion in 2015/16, while its net assets grew to JPY 540 million from JPY 69 million.

The deal, which is expected to be finalized on April 16, will provide Monex, whose main business is online securities trading, with access to Coincheck’s user base, which grew in line with the strong expansion of the cryptocurrency market last year.

Earlier this week, Monex said it had been considering the purchase of Coincheck in line with the shift of its business focus to blockchain technology and cryptocurrency since October 2017.

Coincheck suffered a major blow at the end of January when it was targeted by hackers who stole some USD 530 million worth of NEM coins. NEM is Coincheck’s own digital token and was the 10th biggest cryptocurrency by market capitalization then. Coincheck admitted that more than 250 000 of its clients were affected by the theft and promised to reimburse them.

The hack attack brought Japan’s Financial Services Agency (FSA) to Coincheck’s offices at the beginning of February. Following the inspection, FSA named Coincheck as one of 16 crypto exchanges in the country that have not yet obtained an operating license.

“Coincheck is in the process of enhancing its governance and internal control after receiving the business improvement order from the Kanto Local Finance Bureau […] We aim to build a secured business environment for customers by fully backing up Coincheck's enhancement process,” Monex said.

Japan is one of the biggest crypto markets in the world. The country was the first to require all crypto exchanges to register with the regulatory authorities. It is also a pioneer in considering ICO-friendly regulations that should make fundraising through initial coin offerings a reliable and trustworthy business amid widespread scams that prompt other governments to ban the digital token crowdfunding.