DMM.com to quit cryptocurrency mining business

Japanese entertainment and e-commerce giant DMM.com is reportedly quitting the cryptocurrency mining business, Bitcoin.com reported referring to local media reports.

DMM.com began its crypto mining business back in October 2017. However, it now plans to exit the business due to falling profitability. If reports are to be believed, the company had decided to exit crypto mining business in September 2018.

“Deteriorating profitability is the main cause,” DMM.com said (Bitcoin.com quoted from Toyo Keizai). “The withdrawal process such as the sale of the machines will go over to the first half of 2019.”

The company said that it had underestimated security concerns of virtual currency mining business. It said:

“I would like users to experience the extraordinary mining site in their lives. From such thought DMM opened a part of the [mining] farm to the public, but this was canceled in early June. It is because it is judged that ensuring security is difficult. Overseas, theft of virtual currency mining machines has been steady, and [there were attempts] even at the DMM’s Kanazawa farm.”

DMM.com is the operator of DMM Bitcoin – one of the 16 regulated cryptocurrency exchanges in Japan. DMM founder Keishi Kameyama recently said that he plans to focus on the exchange business and blockchain going forward.

Moreover, the company recently announced that it will not launch its crypto trading app Cointap as planned, saying that it has become difficult for it to attract beginner crypto traders in the wake of falling cryptocurrency prices and the hack of Coincheck exchange last January.

Last month, another Japanese firm GMO Internet announced plans to quit the development, manufacture, and sales of cryptocurrency mining machines. It said that “the environment is increasingly competitive because of the decreased demand mainly due to the decline in the cryptocurrency price, the decline in the sales price, etc.”