Tokyo-based software firm CAICA has become the latest company to enter the cryptocurrency industry with a new virtual currency subsidiary capitalized at 10 million yen.
CAICA Inc., a Tokyo-based software services firm, is known for developing software solutions for a number of financial processes including internet banking, foreign exchange and payments systems among Japanese banks. The company has now signaled its foray into the cryptocurrency space, capitalizing on the explosion in awareness and adoption of currencies like bitcoin in Japan.
In an announcement [PDF], the 28-year old company confirmed its decision to enter the “virtual currency related business by conducting research and development of virtual currency systems, investment in virtual currencies and the investment business [of virtual currencies]”.
Japan became a friendlier place for cryptocurrencies after April’s legislation that ruled bitcoin as a legal, recognized method of payment in the country. Within a month, Japanese companies were rushing to fulfill demand and a growing appetite for cryptocurrencies with over 18 applications filed for cryptocurrency exchanges. Tellingly, 10 out of those 18 companies were new entrants to the market. A notable example is that of Japanese internet conglomerate GMO launching its bitcoin trading platform in May. In September, Japan’s Financial Services Agency (FSA), granted licenses for 11 Japanese bitcoin exchanges under new regulations to promote “sound market development” of the country’s cryptocurrency industry.
An excerpt from CAICA’s announcement explained:
Customers, markets and environments are undergoing drastic changes and realize that business decisions and business development should quickly respond to this change…In order to do so, it is effective to establish a [virtual currency] subsidiary as a specialized company.
Further, the company outlined a number of business areas in which the new unit will partake in, namely:
The wholly owned Tokyo-based subsidiary launched today, November 20, and will begin operations on December 1 with a capitalization of 10 million yen.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:48 PM UTC