bitFlyer

bitFlyer is a private company headquartered in Tokyo, Japan and founded in 2014. It operates one of the largest cryptocurrency exchanges with 2.5 million users[1] and develops other crypto-related technology.

bitFlyer
TypePrivate
IndustryCryptocurrency
FoundedJanuary 9, 2014
FounderYuzo Kano
Headquarters
Tokyo
,
Japan
Area served
Worldwide
Key people
Kuniyoshi Hayashi, Chief Executive Officer
Websitebitflyer.com

History

bitFlyer was founded in 2014 by Yuzo Kano, a former derivatives and bonds trader from Goldman Sachs.[2] bitFlyer's cryptocurrency exchange was launched in April 2014, a few months before the once market-dominant bitcoin exchange, Mt. Gox, went out of business.[3] In 2018 the exchange stopped taking new customers after Japanese regulators accused the exchange of not taking actions to stop money laundering and terrorist financing.[4] Regulators stated that most directors were friends of the CEO Yuzo Kano, a former Goldman Sachs trader.[4] By February 2016, it had 100,000 users and was processing about 7 billion yen ($64 million USD) in monthly cryptocurrency transactions, making it the largest Bitcoin exchange in Japan.[5] It raised about $36 million USD in venture capital over three funding rounds.[6] The company established partnerships with retailers, mobile app companies, and payment processors to facilitate smartphone-based cryptocurrency payments at retail locations.[7] bitFlyer also secured regulatory approval to sell cryptocurrency to institutional investors.[8]

bitFlyer expanded internationally to the United States in November 2017 and to Europe in January 2018.[6] By 2018, the company was processing 80 percent of bitcoin transactions in Japan and had grown to 150 employees.[6][9] In 2018, bitFlyer was one of six exchanges ordered to improve their procedures against money laundering, causing bitFlyer to temporarily suspend services while it implemented new systems.[10]

In 2019, bitFlyer created a subsidiary focused on blockchain technology and services.[11]

Services

Users of the bitFlyer exchange can buy/sell cryptocurrency with each other, or buy/sell directly with bitFlyer itself.[3]

bitFlyer's first service was its cryptocurrency exchange, which was initially focused on bitcoin.[9] The company later added futures contracts and bitcoin derivatives to the exchange.[1][6] As of 2017, 75 percent of transactions on bitFlyer are for derivatives, where users make investments based on their prediction of future bitcoin prices.[12]

bitFlyer first introduced its blockchain technology, called Miyabi, in 2016.[13] In 2019, bitFlyer added other cryptocurrencies to its exchange, such as Ethereum and Litecoin. The company also added features to pay for goods at retailers using cryptocurrency and to buy cryptocurrency using credit cards or points from loyalty programs.[14] In June 2020, bitFlyer introduced a blockchain-based voting service called bvote.[15] The company also introduced a blockchain consulting arm.[16]

References
  1. Popper, Nathaniel (September 1, 2017). "Bitcoin Bug Bites Japan and South Korea as China Clamps Down". The New York Times. Retrieved June 2, 2020.
  2. Williams-Grut, Oscar (January 24, 2018). "Japan's biggest bitcoin exchange saw $150 billion traded in less than 2 months: 'December was certainly an interesting month'". INSIDER. Retrieved June 3, 2020.
  3. Alpeyev, Pavel (July 22, 2014). "Ex-Goldman Trader's Bitcoin Exchange to Fill Mt. Gox Void". Bloomberg. Retrieved February 6, 2020.
  4. Fujikawa, Megumi (June 22, 2018). "Japan's Biggest Bitcoin Exchange Suspends New Business". WSJ. Retrieved March 16, 2021.
  5. "ビットコイン取引所大手bitFlyerが貫く「経営の王道」". Forbes JAPAN（フォーブス ジャパン） (in Japanese). February 25, 2016. Retrieved June 2, 2020.
  6. "Japan bitcoin bourse group stages Europe expansion". Financial Times. January 23, 2018. Retrieved June 3, 2020.
  7. Hoshi, Akio (April 5, 2017). "ビットコイン決済が身近に、bitFlyerがビックカメラ2店、Coincheckが26万店展開のAirレジで". TechCrunch Japan (in Japanese). Retrieved June 10, 2020.
  8. Ponciano, Jonathan (November 28, 2017). "With Regulatory Approval, BitFlyer Launches U.S. Crypto Exchange Targeting Institutional Traders". Forbes. Retrieved June 10, 2020.
  9. Nakamura, Yuji; Sagiike, Hideki; Hyuga, Takahiko (May 10, 2018). "Ex-Goldman trader Yuzo Kano is hiring old rivals to build a cryptocurrency empire in Tokyo". Bloomberg. Retrieved June 2, 2020.
  10. Varshney, Neer (June 22, 2018). "Japan's biggest cryptocurrency exchange suspends new registrations amidst regulatory clampdown". Hard Fork | The Next Web. Retrieved June 10, 2020.
  11. Skinner, Celeste (May 24, 2019). "bitFlyer Sets Up Blockchain Subsidiary, Names Yuzo Kano as CEO". Finance Magnates.
  12. "Bitcoin feeding frenzy fuelled by 15 times leverage, says exchange". Financial Times. December 10, 2017. Retrieved June 10, 2020.
  13. Hoshi, Akio (December 21, 2016). "bitFlyerがブロックチェーン技術Miyabiを発表、新アルゴリズムとスマートコントラクト搭載". TechCrunch Japan (in Japanese). Retrieved June 2, 2020.
  14. 拓史, 吉田 (October 12, 2016). "Eコマースはビットコイン普及の呼び水になるか：bitFlyer加納代表". DIGIDAY［日本版］ (in Japanese). Retrieved June 2, 2020.
  15. "ビットフライヤー、株主総会オンライン向け投票アプリ". 日本経済新聞 電子版 (in Japanese). June 9, 2020. Retrieved June 11, 2020.
  16. McIntosh, Rachel (April 27, 2020). "Japanese Crypto Exchange BitFlyer Launches Blockchain Consulting Service". Finance Magnates. Retrieved June 10, 2020.


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