Former ‘big three’ Chinese bitcoin exchange BTCC has been acquired by a Hong Kong-based blockchain investment fund.
In an announcement this week, BTCC confirmed its acquisition by a blockchain investment fund based out of Hong Kong. While details remain scarce and the terms of the deal are yet to be disclosed, the acquisition breathes new life into the former bitcoin giant, first known as BTC China, laying claim as the world’s oldest running bitcoin exchange.
BTCC explains the acquisition will help the company shift focus to the international market following China’s crippling curbs that has led to the widespread shuttering of domestic cryptocurrency exchanges.
BTCC co-founder Bobby Lee stated:
"[The] acquisition is an incredible milestone for BTCC that validates all of our hard work over the past few years. I’m very excited about the resources this gives BTCC to move faster and aggressively grow our businesses in 2018 and beyond."
With an optimistic take on BTCC’s new future, Lee further added that the new resources will spur BTCC “to lead every segment of the digital currency ecosystem, including the pool, payments and exchange businesses.”
BTCC pool, or BTCC’s mining pool, will remain as one of three core products in BTCC’s new business model, alongside its bitcoin wallet Mobi and a USD-based cryptocurrency exchange. BTCC is no longer operating DAX, a crypto-to-crypto exchange that launched in June 2017.
“We now have the resources to more fully realize our vision of safeguarding and stabilizing digital currencies' blockchains,” added BTCC mining pool vice president Denver Zhao. At the time of publishing, data from Blockchain.info shows BTCC’s mining pool accounting for 2.8% of total bitcoin hash rate.
BTCC, along with the rest of China’s bitcoin startups, first saw scrutiny by authorities in January 2017 after central bank officials performed on-site visits at multiple domestic exchanges. This led to BTCC suspending user withdrawals of bitcoin in mid-February before eventually lifting the blockade in June. In mid-September, Chinese authorities mandated a shutdown of bitcoin exchanges, spurring BTCC to suspend trading immediately before ultimately shutting shop on September 30, 2017.
After its forceful removal from its home nation, BTCC has since relocated its headquarters from Shanghai to London.
Featured image from Shutterstock.