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Japan’s Monex Group to Buy Coincheck for $34 Million, Plans Future IPO

By on April 6th, 2018 at 3:30 pm UTC · 3 min read

Japanese financial services provider Monex Group announced 100% share acquisition of Coincheck. The deal is planned for April 16.

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Oki Matsumoto, Chairman and Chief Executive Officer, Monex Group. Photo: World Economic Forum
 / Flickr
Oki Matsumoto, Chairman and Chief Executive Officer, Monex Group. Photo: World Economic Forum / Flickr
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Monex Group, Japanese online brokerage firm, today announced its decision to acquire 100% shares of Coincheck which suffered the largest crypto hack earlier this year. The deal will cost Monex 3.6 billion yen (around $34 million).

Yesterday, there came the news that Tokyo-based cryptocurrency exchange Coincheck accepted a takeover offer from Monex Group, Japan’s third-largest online brokerage. And today Monex said it would buy Coincheck Inc, acquiring full ownership of the Tokyo-based firm.

According to a Monex press release, the company believes that blockchain technology is likely to change the future. “We recognize blockchain technology and cryptocurrencies as next-generation technologies and platforms which are likely to drastically change the way people approach money. Therefore, since we announced “MONEX’s new beginning” last October, we have considered entering the cryptocurrency exchange business and set up the Monex Cryptocurrency Lab to grow our business based on these new technologies,” Monex wrote.

“Most especially, the cryptocurrency exchange business plays a core part in a vision of “MONEX’s new beginning”. Therefore, the Company has resolved on 100% share acquisition of Coincheck who has been a pioneer among cryptocurrency exchangers,” the press release reads.

Monex is very positive about the deal, considering that it will contribute to crypto industry development and Monex growth in particular. “Through integrating Coincheck’s knowledge on blockchain technology and cryptocurrency with our knowledge on financial industry, we will accelerate the “MONEX’s new beginning” and contribute to the sound development of the cryptocurrency industry. The Company and Coincheck aim to develop a common vision to design the way of finance of the future and provide new values.”

The deal will be executed on April 16. Coincheck’s CEO and COO will resign from the board of directors and become the company’s executive directors. Toshihiko Katsuya, Monex’s managing director and senior executive officer, will take over as president and representative director of Coincheck.

The deal will allow Monex to access Coincheck’s trading platform and customer base. Monex aims to launch an initial public offering of Coincheck shares in the future, which will be the first such listing by a Japanese cryptocurrency exchange. According to Monex, Coincheck generated net income of 471 million yen for the year ended in March.

This acquisition shows that major Japanese financial firms still see growth in the booming domestic cryptocurrency market, despite security and regulatory risks. “Coincheck is a global pioneer of the cryptocurrency business, a global brand,” Oki Matsumoto, Monex CEO, said. “Although we can manage risk, we can’t make Coincheck’s brand value or foundation.”

Currently the Tokyo-based exchange is applying for a license with the FSA. Earlier this year, FSA raided Coincheck in order to “ensure the preservation of clients’ assets.” According to an FSA official, it would make thorough checks on whether Coincheck implements an effective management system under Monex’s ownership.

Daria Rud
Author: Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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