November 17, 2020 | AtoZ Markets – Cryptocurrency exchange Huobi is exploring the possibility of buying two major trading platforms: Bithumb and bitFlyer, according to information today from Chinese blockchain reporter Wu Blockchain.
Exclusive: Wu learned that Huobi, China's largest exchange, is trying to acquire Japan's largest exchange Bitflyer and Korea's largest exchange Bithumb. The price of Bitflyer is US$500 million. However, as Huobi is investigated by the Chinese government, both will be suspended. pic.twitter.com/rORH7x1EMn
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020
Huobi plans to buy Bithumb and bitFlyer crypto exchanges
Established in 2013, Huobi crypto exchange operates exchanges in Singapore, Japan, and Hong Kong in addition to China.
Korea-based Bithumb crypto exchange was founded in 2014 and is the largest in the country. Bithumb also operates in India and Thailand. Meanwhile, bitFlyer is Japan's largest cryptocurrency exchange founded in January 2014.
Read also: Bithumb Exchange Raided Again by Korean Police
bitFlyer has 2.5 million users and is estimated at $500 million while Bithumb's value ranges from $430 million to $600 million.
Such figures were called by the media in September, when information appeared about the re-sale of the company after searches and interrogation of the CEO of the exchange, Lee Jong Hoon, about the case of fraud with the native Bithumb BXA token.
“Huobi is aware of the risks associated with dependence on the Chinese market, so it is very urgent to expand into overseas markets. However, Japan and South Korea are not the best investment targets. Their users are very closed and the government strictly regulates [the industry], ”the journalist wrote.
Huobi also recognizes the risk of relying too much on the Chinese market, so it is very urgent to expand overseas markets. But Japan and South Korea are not a good investment target. Their users are very closed, and the government has super strict supervision.
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020
Wu noted that deal negotiations were hampered by Huobi's problems with the Chinese authorities. Earlier, the journalist spoke about the possible arrest of Robin Zhu, but representatives of the exchange denied this information.
Recall, against the background of problems with regulators, the outflow of cryptocurrencies from Huobi to the Binance exchange on November 13 reached an absolute maximum - more than 16,500 BTC for about $99300 million.
Think we missed something? Let us know in the comment section below.