Japan's SBI Group Scraps Huobi Crypto Exchange Partnership

SBI Virtual Currency, a subsidiary of SBI Holdings, will no longer partner with Huobi Group on setting up two Japan-based cryptocurrency exchanges.

AccessTimeIconMar 12, 2018 at 9:30 a.m. UTC
Updated Sep 13, 2021 at 7:40 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

SBI Holdings, the investment arm of Japanese financial giant SBI Group, has canceled a business partnership with Chinese cryptocurrency startup Huobi Group.

In an announcement released Friday, SBI Holdings said it has decided to halt the business collaboration with Huobi for the launch two cryptocurrency exchanges in Japan.

As reported by CoinDesk, the two firms first struck the deal in December 2017 to combine efforts for the new Huobi Japan and SBI Virtual Currency exchanges.

The latter exchange had already completed business registration with Japan's regulator, the Financial Services Agency (FSA), in September 2017. Huobi Group had indicated that the platforms were expected to begin operations this month.

Yet, in the latest announcement, SBI Holdings said it has scrapped its original plan to use Huobi's technology, know-how and human resources in operating the exchanges, and instead has decided to bring the efforts in-house.

In explaining the reasons for canceling the deal, SBI Holdings said the firm needs a system that incorporates higher levels of security and which can respond promptly to domestic and overseas regulations.

As such, according to the statement, SBI Holdings will now utilize SBI Group's own resources to build a system with enhanced security and sufficient processing capacity.

The decision comes at a time when the FSA is beefing up its efforts in scrutinizing Japanese exchanges regarding security measures, following the hack of some $530 million-worth of the NEM cryptocurrency from the Coincheck exchange in January.

Just last week, the FSA issued administrative penalties to several domestic platforms deemed reckless by the agency, having allegedly provided insufficient security measures to fully protect investors.

The news also follows a Feb. 28 announcement by SBI, saying it had postponed the live launch of SBI Virtual Currency citing the need for further security enhancements.

At press time, Huobi Group had not responded to CoinDesk's inquiries for comments on its plan to further pursue the Huobi Japan effort.

Editor's note: Some of the statements have been translated from Japanese. 

Scrap paper image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.