Bitflyer Enters the US Market
Bitflyer, Japan's and the world's largest bitcoin exchange by trading volume, announced on Friday that it will launch a US-based bitcoin exchange this fall. The company has already obtained regulatory approval to operate in 34 states. The new exchange, operated by its wholly-owned subsidiary Bitflyer USA Inc. headquartered in San Francisco, will initially target professional traders and institutional clients, offering BTC/USD trading at launch and expanding to other trading pairs and products later.
Global Ambition and Strategic Timing
Founded in 2014, Bitflyer has raised over 4.1 billion yen ($36 million) in venture capital funding. CEO Yuzo Kano stated: 'While Bitflyer, Inc. is headquartered in Japan, my vision was always to create a global company, and I am excited that the US will be its first step toward global expansion. Bitcoin is a global currency, now our exchange will be global too.' The announcement came exactly one week after Bitfinex, the leading bitcoin exchange for USD volume, exited the US market citing regulatory burdens. In comparison, Coinbase is licensed in 38 US states. Bitflyer's move positions it directly against Coinbase in the regulated US landscape.
Trading with 'Mrs. Watanabe'
Bitflyer has facilitated over $40 billion worth of bitcoin trades, including $30 billion in 2017. The company attributes part of this growth to the powerful Japanese retail investor class known as 'Mrs. Watanabe,' a major force in global forex markets. COO Bartek Ringwelski said: 'There is a concept of ‘Mrs. Watanabe’ in the Japanese forex market; she is the personification of household trading in Japan. Bitflyer aims to be the first exchange to allow US bitcoin traders to trade with Mrs. Watanabe.' Following Japan's recognition of bitcoin as legal property in April, more Japanese households have turned to bitcoin amidst near-zero savings rates. Portfolio manager Ivan Brightly of Full Node Capital commented: 'Tokyo has been the epicenter for forex trading for decades. As the market leader in Japan, I expect Bitflyer to bring significant liquidity and market expertise to US markets.'