Monex Purchased Coincheck For $33.6M

Monex shares rose after the announcement of the deal by 20%
06 April 2018   437

Japanese online broker Monex Group announced that it buys the local currency exchange Coincheck. This is reported by the Reuters.

The transaction amount is 3.6 billion yen ($ 33.6 million). As a result of the transaction, Monex will have access to the trading platform and the Coincheck customer base. Monex shares rose after the announcement of the deal by 20%, in general, from the time when the first information about the possibility of such acquisition appeared, online broker shares rose by 40%.

Monex Group Inc CEO Oki Matsumoto (L) and Coincheck CEO Koichiro Wada
Monex Group Inc CEO Oki Matsumoto (L) and Coincheck CEO Koichiro Wada 

Coincheck is a global pioneer of the cryptocurrency business, a global brand. Although we can manage risk, we can’t make Coincheck’s brand value or foundation.
 

Oki Matsumoto

CEO, Monex

At the beginning of this year, NEM coins equivalent to 58 billion yen ($ 527 million) were withdrawn from the accounts of the Japanese currency exchange Coincheck. The amounts went to 20 addresses, including, as Kyodo reports, in the US and New Zealand. The Japanese police assume that a computer virus was used for this theft. Theft touched accounts of 260,000 Coincheck customers.

After this incident, the Japanese financial regulator announced its intention to conduct an audit of all the country's crypto-exchange exchanges

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   119

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.