Tokyo-based cryptocurrency exchange Coincheck has reportedly accepted an acquisition bid from Japan’s third-largest online brokerage, Monex. The deal will see the exchange shuffle its management to regain investor trust and get approval from Japan’s Financial Services Agency (JFSA).
According to financial publication Nikkei, Monex’s chief operating officer (COO) will take over as the new Coincheck president if the deal is finalized. By then, the cryptocurrency exchange’s founding president Koichiro Wada and COO Yusuke Otsuka will have stepped down.
The deal will see Coincheck receive capital totaling “several billion yen” – tens of millions of US dollars – from the Japanese brokerage firm. The exact form of the investment, per Nikkei, is still being worked out and details should come out as early as Friday.
Earlier this year, Coincheck was notably hacked for over $530 million worth of NEM, most of which is considered to have already been laundered by the hackers. The exchange vowed to pay its users back, and since then the JFSA has been strict when it comes to regulations.
As covered, Coincheck itself wasn’t licensed by the JFSA at the time the hack occurred, and strict regulations were making it hard for Monex to enter the cryptocurrency exchange business. Buying the exchange could be a way for it to enter the market.
Following the hack, the JFSA demanded an overhaul of Coincheck’s operations, as it has already struck it with two business improvement orders. Katsuya, according to the news outlet, is seen as a sound choice to rebuild the embattled cryptocurrency exchange thanks to his experience as president of Monex’s online brokerage arm.
Monex’s dive into the cryptocurrency exchange industry is part of the company’s belief that blockchain technology will power its core operations as a major brokerage. Whether Coincheck receives a license from the Japanese regulator will be determined, after its operations are reviewed while under Monex.