Share Prices get high when Japan’s Monex announces to buy CoinCheck
Japan’s Monex is the online brokerage firm that announces Yesterday to buy a Cryptocurrency Exchange named CoinCheck which has been suffered a hack in past days. The Monex group is ready to pay $33.59 million for this deal.
After this announcement, the share prices of Monex soared by 20%.
CoinCheck has borne a breach of $530 million in February this year. This year on February 2, the official Financial Services agents went to CoinCheck headquarters to conduct a research and just after a week CoinCheck countered a breach of $530 million, by the hackers. It is said the breach has incurred due to lenient security protocols of financial regulatory bodies of Japan.
Monex group said that they will be having complete ownership of CoinCheck. CoinCheck by the end of the March month this year has generated $471 million Yen in net income. The amount is approximately equal to $4.4 million.
There is a shuffle in the list of board of directors after buying decision of Monex. The CEO and COO of CoinCheck will resign and join as the Executive Directors at Monex. Whereas, the current managing director and senior executive officer at Monex, Toshihiko Katsuya will be promoted to the President and Representative Director Roles.
The deal will be very beneficial for Monex as it will be able to have access to all the trading platforms of CoinCheck and it’s customer base as well.
This deal will bring one of the financial services firms on the front of Japanese cryptocurrency trading market. One of the largest rivals of Monex, SBI also decided to run a cryptocurrency exchange and got the licensed too but due to some security reasons, the decision is on hold. SBI stands for Strategic Business Innovator Group, a financial services company group.
