Monex Group Plans Major Stake Acquisition in 3iQ Amid Expansion into Crypto Asset Management
Summary:
Japanese firm Monex Group is set to acquire a major stake in 3iQ Digital Holdings, motivated by 3iQ's prior accomplishments in listing Bitcoin and Ether exchange-traded funds. The acquisition forms part of Monex's strategy to enhance its asset management business by leveraging crypto asset management, anticipating a surge in demand from institutional investors and global crypto exchanges. As part of the acquisition, 3iQ plans to collaborate with Coincheck, a crypto exchange previously acquired by Monex. The move comes following a recent Japanese tax reform favoring corporate crypto assets.
Monex Group, a Japanese broker, asset manager, and cryptocurrency exchange, announced its intent to acquire a significant stake in 3iQ Digital Holdings. On December 28th, Monex credited 3iQ's track record of listing among the first-ever Bitcoin (BTC) and Ether (ETH) exchange-traded funds in North America as a motivating factor for the acquisition. The Canadian firm established a Bitcoin fund in 2020, well before the U.S. Securities and Exchange Commission might approve similar ventures. Monex CEO Yuko Seimei explained that the purchase falls in line with the company's strategic vision to bolster its asset management operations through embracing 3iQ, aiming to capitalize on the expected growth in crypto asset management demand from global institutional investors and cryptocurrency exchanges. 3iQ's CEO and chair, Frederick Pye, confirmed plans for the firm to partner with Coincheck, which Monex acquired in 2018 following a massive security breach at the crypto exchange, resulting in the theft of NEM tokens valued at around $534 million. In December, Japan implemented a tax reform that may enable businesses to circumvent taxes on "unrealized profits" from cryptocurrency assets. Although Japan's regulatory climate led several crypto firms to close their operations, the country has recently seen increasing embrace of blockchain and Web3 under the steering of Prime Minister Fumio Kishida.
Published At
12/29/2023 12:25:47 AM
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