Japanese messaging company LINE registers new cryptocurrency exchange

LVC Corporation, a group company of LINE Corporation, one of Japan’s leading SNS service providers, has completed registration as a cryptocurrency exchange as required under the Payment Services Act.

LVC stated that it has established an operational structure pursuant to the screening procedures for an application to be newly registered as a virtual currency exchange service provider, which is stipulated by Japan’s Financial Services Agency (FSA).

The name of the crypto exchange is yet to be revealed, however, Line will offer its services to its 80 million strong user base in Japan. Statista lists Line as having 203 million active users across Japan, Thailand, Taiwan, and Indonesia — significantly less than major competitors Facebook Messenger and Wechat. It is, however, a leader in innovating the monetization of messaging apps, with revenues of $1.61 billion in 2017, selling products like digital stickers over the service via microtransactions.

Japan, which has the second-largest number of crypto traders in the world, appears to be expanding its position as a crypto trading hub. The FSA has been working to approve up to 110 new trading platforms in 2019. The FSA recently strengthened Japan’s existing crypto legislation to protect cryptocurrency investors and further integrate the crypto sector with traditional finance. Under new legislation to take effect in 2020, crypto asset transactions and trading will be subject to the new Financial Instruments and Exchange Act.

With the addition of LVC, the number of companies registered as cryptocurrency exchanges with the FSA in Japan is now twenty. It’s expected that the race to secure a license to operate an exchange in Japan will increase in the next 18 months as the market heats up.