Japanese entertainment and e-commerce conglomerate DMM Group — the company behind DMM.com with over 27 million members — has unveiled detailed plans for its upcoming cryptocurrency exchange, DMM Bitcoin. The platform is scheduled to open account registrations on January 11, 2018, with service launch on January 10, marking a major move by a traditional industry player into digital assets.
Supported Assets and Features
DMM Bitcoin will offer both spot and margin trading. The seven supported cryptocurrencies are: Bitcoin (BTC), Ethereum (ETH), NEM (XEM), Ripple (XRP), Litecoin (LTC), Ethereum Classic (ETC), and Bitcoin Cash (BCH). Spot trading pairs include BTC/JPY, ETH/JPY, and ETH/BTC. For leveraged trading, 14 pairs are available with up to 5x leverage and a daily leverage fee of 0.04%. Notably, the exchange charges zero transaction fees, while only margin positions incur daily costs.
Competitive Landscape
In comparison, rival GMO Internet's exchange, GMO Coin, supported five cryptocurrencies (BTC, ETH, LTC, XRP, BCH) with leverage options ranging from 5x to 25x but a slightly higher daily fee of 0.05%. DMM Bitcoin's broader coin selection and lower fee structure could give it an edge in Japan's regulated market.
Strategic Ambitions
The exchange will be accessible via iOS, Android, and PC, with trading tools similar to those offered on DMM FX, the company's forex platform. Users can deposit and withdraw in Japanese yen, bitcoin, and ether. In September 2017, DMM Group established a virtual currency subsidiary and announced plans to become one of the world's top 10 mining farms in 2018, signaling a comprehensive blockchain strategy spanning trading and mining.
DMM had previously operated a smaller crypto platform called Tokyo Bitcoin Exchange Inc., which received approval from Japan's Financial Services Agency (FSA) on December 1, 2017. That platform has since been renamed to DMM Bitcoin and temporarily suspended services to prepare for the new launch.
Industry Impact
With a massive user base of over 27 million members from its e-commerce and entertainment services, DMM's entry into the crypto exchange space is expected to accelerate mainstream adoption in Japan. As the FSA continues to enforce strict licensing requirements, the competition among regulated exchanges will intensify. Whether DMM Bitcoin can leverage its parent company's resources to capture significant market share remains to be seen.