bitFlyer Holdings establishes new blockchain subsidiary in Japan

bitFlyer Holdings, the operator of Japanese cryptocurrency exchange bitFlyer, last week announced the establishment of a new wholly-owned blockchain-focused subsidiary.

In a press release dated May 24, the company announced the setting up of bitFlyer Blockchain, Inc. It said:

“In expectation of the expansion of the blockchain market and to further strengthen our blockchain business plan, the bitFlyer Group has established a new subsidiary company with the intent of further accelerating business growth.”

The new unit will focus on the planning, designing, developing, and operational management of blockchain-based services as well as web services and applications.

Located at Minato-ku, Tokyo, Japan, bitFlyer Blockchain, Inc. has a capital of ¥100 million (including capital reserves).

Yuzo Kano, the Chief Executive Officer (CEO) and co-founder of bitFlyer, has been appointed as the representative director and CEO of the new company. He will continue to serve as the director of the parent company.

Takafumi Komiyama and Midori Kanemitsu have also been appointed as the directors of the blockchain subsidiary and will help Kano in his efforts to lead the new unit.

bitFlyer was among the initial cohort of cryptocurrency exchanges to be approved by Japan’s Financial Services Agency (FSA). In June 2018, it received a business improvement order from the regulator relating to the compulsory ID verification procedures of its operations in Japan. The following month it submitted its business improvement plan to the FSA saying:

“Our whole company is committed to complying to all relevant laws and ordinances, strengthening our management system, preventing these issues from reoccurring, and restoring our customers’ trust in us.”