Monex Group to Break into US Crypto Market in Three Months

Monex revealed plans to gain a foothold in the US market with a dedicated offering caters mainly to institutional investors.

Japanese financial services giant Monex Group on Wednesday said it plans to launch its US-based cryptocurrency services in the first quarter of 2019. For the new offshoot, the company filed a money service business registration with each state regulator, Cointelegraph Japan reported.

A money transmittal license (MTL) allows the venue to offer both crypto-to-crypto and fiat-to-crypto trading pairs.

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Earlier in July, Monex revealed plans to gain a foothold in the US cryptocurrency market with a dedicated offering that caters mainly to institutional investors and build on top of over two million accounts it holds worldwide.

In April 2018, Monex Group completed its acquisition of cryptocurrency exchange Coincheck, which was the target of a $534 million hack in January, nearly forcing it to shut down activities.

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Monex Group already has a diverse portfolio of brokerages worldwide though was rumored to be making a big splash in cryptocurrency markets. Earlier this year, Monex set up its own cryptocurrencies unit to study the opportunities in the sector. But its ambitions date back to 2011 when it acquired TradeStation Crypto, the cryptocurrency-focused subsidiary of its US brokerage arm.

Coincheck Re-Launch Delayed

Meanwhile, TradeStation has recently invested in the soon-to-be-launched cryptocurrency exchange ErisX which raised over $25 million from investors including Fidelity Investments and Nasdaq Ventures.

The move also comes just as the US Securities and Exchange ‎‎Commission is seeking legitimate platforms serving as ‎trading venues ‎for digital assets. ‎

This topic has received much attention since the SEC ‎made clear that any digital token with an income stream is ‎a security, and furthermore that ‎any entity wants to ‎become an ATS needs to register with the SEC as a ‎broker-dealer and become a member of a self-regulating ‎organization, such as the ‎FINRA.‎

After helping Coincheck remain in business, Monex says the hacked exchange was scheduled to be re-launched soon; however, due to scrutiny by the South Korean regulators, the launch was delayed.

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