Crypto exchange Gate.io announced on December 23rd, that it will acquire all issued shares of Japanese cryptocurrency service provider Coin Master. The acquisition comes as Gate.io had previously exited the Japanese markets, saying that it will ensure compliance with regulatory rules.
The new deal also comes against the backdrop of Gate.io seeing a user base growth, making the expansion come alongside a growth trajectory for the platform.
Gate Group Secures All Shares Of Coin Master
The deal to buy all shares of Coin Master will see a Gate Group Singaporean subsidiary Gate Information PTE. LTD, undertake and complete the deal.
The final part of the acquisition will see the renaming of Coin Master Co., Ltd. to “Gate Japan Co., Ltd.”
Gate.io’s Previous Exit From Japanese Markets
Today’s new Japanese firm buy out by Gate.io comes after it had previously announced it’s exit from Japanese markets. According to a statement released by Gate.io on July 22, 2024, it had ceased creating new accounts for people residing in Japan while also discontinuing providing worldwide services to Japanese domestic users.
The exchange had stated that it was closing because of compliance requests from authorities such as the Financial Services Agency, and it promised to release further information on the closure shortly.
Gate.io had also said that after winding up its services in the nation, it will begin a program to adhere to Japanese laws and regulations and assist clients by transferring them to exchanges that meet Japanese standards.
The purchase of all shares of Coin Master stays in tandem with Gate.io’s vision of reentering the Japanese markets.
Gate Group has also stated that it intends to further encourage the growth of localized businesses in the Japanese market by acquiring Coin Master, to offer domestic customers in Japan exclusive digital asset trading platform services that adhere to local legislation in the future.
Gate.io’s Previous Milestone
Today’s deal also comes after the platform had previously achieved a new milestone with its user base. As UnoCrypto reported on December 16th, there are now over 20 million Gate.io users worldwide.
The site reached a new milestone just a few days after it was the subject of purported data breach rumors. Following a great deal of speculation on messaging apps and social media, Gate.io explicitly refuted reports of a security compromise.
Additionally, the platform is also a part of the top 10 “Blockchain and Cryptocurrency” firms under the Fortune’s list of the top 60 Asian financial technology innovators.
For the eleven-year-old business, this accomplishment represents a major turning point and demonstrates its creative use of blockchain technology and bitcoin services.