Huobi Considers Acquisition Of Cryptocurrency Exchanges Bitflyer And Bithumb

Major Chinese cryptocurrency exchange Huobi is exploring the possibility of taking over Japanese rival Bitflyer, andSee also the Korean platform Bithumb.

One of the largest Chinese crypto exchanges Huobitrying to buy two cryptocurrency trading platforms at once: Bitflyer and Bithumb. Chinese blockchain correspondent Colin Wu announced this on his Twitter page. According to Wu, Bitflyer is tentatively valued at $ 500 million.

Exclusive:Wu learned that Huobi, China's largest exchange, is trying to acquire Japan's largest exchange Bitflyer and Korea's largest exchange Bithumb. The price of Bitflyer is US$500 million. However, as Huobi is investigated by the Chinese government, both will be suspended. pic.twitter.com/rORH7x1EMn

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020

Meanwhile, Wu notes that in the case of absorptionBitflyer could block both exchanges as Huobi is "under investigation by the Chinese government." Earlier, Wu said that a Huobi top manager was at the center of investigative actions, but later the official Twitter channel of the cryptocurrency exchange called these "false."

However, Bithumb is doing well in the local marketnot better. In early September 2020, the exchange found itself at the center of a scandal involving over $ 20 million in fraud due to the listing of a cryptocurrency asset.

In November 2019, Huobi announced its retirement fromthe US market. Since then, the company has remained two key areas for expansion - Japan and South Korea. Wu believes that Huobi is seen as a serious threat from the Chinese authorities, and therefore is in a hurry to take over foreign companies:

“Huobi is aware of the risks of addictionfrom the Chinese market, therefore it is very urgently expanding to overseas markets. However, Japan and South Korea are not the best investment targets. Their users are very closed and the government strictly regulates [the industry]. ”

According to Wu, both deals to buy exchanges had to be frozen due to a "surprise investigation" of Huobi. Huobi's founder has been banned from leaving China since 2017, Wu said.

China is actively preparing for the release of the digital yuanand has been pursuing the largest local players over the past few months. For example, in October, Chinese authorities arrested Star Xu, founder of OKEx. It is still unknown what business Xu is on.

Despite pressure on the local crypto industry,China continues to invest in the development of the decentralized finance (DeFi) market. According to James Gillingham, co-founder of the Finxflo liquidity aggregator, the Chinese authorities are "partnering" with Huobi, resulting in the exchange creating its own DeFi network.

“Thanks to Shanghai College, they have received full support. They are actually supporting this [development of DeFi] through Huobi, ”added Gillingham.

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