An unnamed Hong Kong-based blockchain investment fund has acquired Chinese crypto exchange BTCC

Оригинал: http://www.businessinsider.com/unnamed-hong-kong-based-blockchain-investment-fund-acquired-chinese-crypto-exchange-btcc-2018-1

daily bitcoin trading volume

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Chinese cryptocurrency exchange BTCC has been acquired by an unnamed Hong Kong-based blockchain investment fund. BTCC is the fifth-largest cryptocurrency exchange by daily Bitcoin trading volume.

Additionally, part of its services are now registered in the UK, where it likely plans to deploy its services. The company said it will now shift its focus exclusively to international markets, concentrating on its three major products: mining pool BTCC PoolMobi Bitcoin Wallet, and USD Exchange. As of December, BTCC stopped operating its DAX cryptocurrency exchange.

The acquisition comes after China’s September 2017 decision to suspend all cryptocurrency exchanges in the country. As a result of that move, BTCC has had to find new ways to bring in revenue and continue to operate, likely pushing it to explore its options outside of China. This acquisition should help BTCC’s international expansion efforts, as Hong Kong is often seen as a gateway into Western markets.

Additionally, that the blockchain investment fund acquiring BTCC is Hong Kong-based means it will likely have knowledge of BTCC’s previous market and operations, making it easier for the two to work together.

BTCC’s approach to breaking out of the Chinese market could serve as an example to its peers. With cryptocurrency exchanges still barred from operating in China, many are likely looking to relocate elsewhere. And contemplating a sale could be a smart way to accomplish this, as it’s cheaper and more efficient for an exchange to work with another company, likely with greater expertise and resources, than it would be to comply with regulations in different markets on its own.

An acquisition could also provide an exchange with a ready-made pool of customers in potential new markets. If BTCC successfully moves away from China with this acquisition, we will likely see other China-based cryptocurrency exchanges seeking to be acquired in the future.

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