Japan Rakuten acquires Tokyo Cryptocurrency Exchange for $2.3 Million

Japanese e-commerce giant Rakuten announced on Friday that it would acquire a Tokyo-based cryptocurrency exchange, Everybody’s Bitcoin Inc., for a price of 265 million yen (about $2.3 million USD). The acquisition will be completed on October 1. Rakuten said in February this year that it plans to launch its own cryptocurrency to help the company expand its global customer base.

The announcement mentioned that Everybody’s Bitcoin’s goal is to officially register as a cryptocurrency exchange and to further promote its cryptocurrency business. Rakuten said that the group decided to acquire the shares of the exchange in order to combine it with the proprietary technology of Rakuten as a financial service provider by using it as a proprietary technology of the cryptocurrency exchange.

Rakuten said the acquisition was in response to customer demand for cryptocurrency transactions. The company also expects that the role of cryptocurrency payments in e-commerce, offline retail, and P2P payments will grow in the future. In order to provide a cryptocurrency payment method, it is necessary to provide cryptocurrency trading functions and Rakuten has been considering entering the cryptocurrency trading ranks.

Everybody’s Bitcoin was founded in 2016 and is owned by Traders Investment. For the financial year ended March 30, 2018, the exchange’s net loss was 49.217 million yen (approximately $442,000 USD), an increase of 48.743 million yen over the same period last year; and the net assets of this fiscal year recorded more than 205 million yen (about $1.8 million USD), an increase of approximately 181 million yen over the same period last year.