The year 2018 is a bad one for the overall cryptocurrency market since prices plunged more than three-fourths from the peak level. However, Hong Kong stock exchange-listed Madison Holdings Group’s subsidiary, Madison Lab, is taking the gamble of entering into the digital coin space. This is quite evident when the company has acquired a majority stake in a Japanese virtual asset trading platform, BitOcean.
The Hong Kong business group disclosed in a filing that it is acquiring a 67.2 percent stake in the Japanese firm for about $15.12 million in addition to $15 million for various fees. Madison Lab’s bet on the emerging asset class is clear from the way it picked up one of the 16 registered platforms with the Financial Services Agency (FSA) in Japan though it is yet to start trading. Despite the overall digital coin sector is undergoing tremendous pressures, the group believes that it will widen its source of income.
The Hong Kong firm preferred to acquire a stake in a Japanese trading firm since the country encourages the emerging asset class driven by growing popularity. Aside from that, the nation has a complete regulatory system in place since it is one of the two countries that are practicing a licensing system for cryptocurrencies trading. Japan is enjoying trading of approximately 20 percent of bitcoin around the globe. Its chairman, Raymond Ting Pang-wan, is clear that the company is keen to invest in a registered or regulated platform.
Hong Kong Securities Association chairman, Gary Cheung Wai-Kwok, said that this is a small investment only and will not have any big risk factor for the group. This is based on the market cap of approximately $534.9 million of Madison and the stake acquisition in BitOcean.
He also believes that the move will help to expand its income source. This is not the first diversification since it purchased a majority interest in Eternal Peal Securities last year. Aside from this, the company acquired shares in CVP Capital, as well as, CVP Asset Management in 2017.
The latest is not the only thing in the crypto sector since HDR Global Trading’s subsidiary, HDR Cadenza Management, is planning a 51 stake sale to Madison Labs though the deal is yet to be finalized. Reacting to this, Ting indicated that while BitOcean deal is meant to diversify its operations, any alliance with BitMex will support the development of cryptocurrency trading platform.
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The post Amidst Sluggishness, Madison Lab Bets On Cryptocurrency appeared first on Cryptovibes.com – Daily Cryptocurrency News .
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