The largest cryptocurrency exchange in China, Huobi, has made plans to move into Japan and South Korea. Huobi has entered into a partnership with SBI Group, one of Japan’s largest financial institutions, to do so.
Huobi has agreed to give 30% equity to SBI Group for their dealings in Japan. In return, SBI Group will be providing the exchange with virtual bank accounts and a powerful banking infrastructure. This deal will help to deter any potential conflict between Huobi and SBI Group that may have otherwise occurred between the Huobi platform and Japanese banks were Huobi to move in without obtaining SBI Group’s approval first.
How does the move into Japan coincide with a simultaneous move into South Korea as well? Well, Japan and South Korea are already working together on several crypto deals, so the move into one can easily instigate the move into the other.
Many are expecting this move into Japan and South Korea to be a major benefit to the countries – not only to their crypto worlds but also to their exchanges on the whole. Together, the Japanese and South Korean crypto markets account for 40% of global Bitcoin trades, along with 10% of global Ethereum trades. With the entrance of such a huge crypto exchange as Huobi, both countries are in the works for an overall restructuring for the better of their vast crypto markets. The exchange will be capable of addressing the extremely high demand for Bitcoin and other cryptocurrencies from high profile traders and institutional investors. Bitcoin has already provided large boosts to the Japanese economy. The entrance of Huobi will help to improve it even more because of these reasons. The same is expected to occur for South Korea as well.
This marks a huge move for the cryptocurrency world. The Asian market is going to see the impacts first, which will then no doubt trickle outwards to the rest of the industry.