Messaging App Line Corporation to Start Cryptocurrency Business
Line Corporation, which is the operator of one of the most popular messaging apps in Japan, announced that it plans to launch a cryptocurrency exchange. Line has around 168 million monthly users. Apparently, the company has become interested in the cryptocurrency market and plans on investing on it. The company is said to be willing to launch its own exchange.
Line registered for a cryptocurrency exchange permit with Japanese regulators
The announcement on these plans was made by the company itself in a message posted on its website. Line actually created a subsidiary, Line Financial Corporation, in order to establish its own exchange. The company shared on its website:
“LINE Corporation (“LINE”) established a new company, LINE Financial Corporation (“LINE Financial”), as a follow-up to LINE Pay – a mobile money transfer and payment service available on the LINE messaging app – in order to further reinforce its position in the financial business domain.”
The company added that it aims to provide a variety of financial services and will also work to promote technologies such as blockchain:
“Going forward, LINE will use this new company as a base as it proceeds with preparations to provide a variety of financial services, including a place to exchange and transact virtual currencies, loans, and insurance – all from the LINE app – and will continue to grow its financial business.”
The company also confirmed that it made the application to register with the Financial Services Agency of Japan, as an exchange for cryptocurrencies. The company said that the application is now under review, so it is yet to see when the permit for Line's new operations will be granted.
An interesting thing is that the company plans on entering now this market, when exchanges are under the rader of the Financial Services Agency. The agency has previously asked all exchanges operating in the country to register with the authorities and wait for approval. The agency has also recently started investigating cryptocurrency exchanges' security following the hack of Coincheck, one of the biggest such exchanges in Japan.
