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 Pool, Mobi 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.
Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider’s premium research service, has put together a report that compiles various fintech snapshots, which together highlight the global spread of fintech, and show where governments and regulatory bodies are shaping the development of national fintech industries. Each provides an overview of the fintech industry in a particular country or state in Asia or Europe, and details what is contributing to, or hindering its further development. We also include notable fintechs in each geography, and discuss what the opportunities or challenges are for that particular domestic industry.
In full, the report:
- Explores the fintech industry in six countries or states, and identifies individual fintech hubs.
- Highlights successful fintechs in each region.
- Outlines the challenges and opportunities each country or state faces.
- Gives insight into the future of the global fintech industry.
Interested in getting the full report? Here are two ways to access it:
- Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you’ll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » Learn More Now
- Purchase & download the full report from our research store. » Purchase & Download Now