Coincheck For $33.5 Million: Monex Defends The Buyout Claiming That There Is No Big Risk

This Was Confirmed By Monex Group CEO

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The CEO of Monex Group said that he has plans to Coincheck which is a Japan-based cryptocurrency exchange. This should happen in two months after the approval of the regulatory body. He said this in Tokyo during a press conference which had Cointelegraph in attendance on April 6.

While answering various questions just after the confirmation, the online broker was involved in the purchase of Coincheck for around 3.6 billion yen (around $33.5 million). Oki Matsumoto, therefore, said that the new roadmap meant for the new Monex controlled Coincheck would be composed of an IPO (initial public offering).

He told the reporters;

“In the future, I’d like to strengthen Coincheck by making initial public offerings, the crypto exchange business will end up being similar to the banking business, so I think we will need more capital in future. In addition, IPOs and external audits will strengthen the company’s management system.”

During an official statement, Monex added that it had made agreements to the “contingency payment” of around half of the aggregated worth of Coincheck net income for the next 3 years which deducts a level of a realized business risk.

This week, Monex caused a stir just as rumours started circulation in the mainstream press in regard to a multi-billion yen deal which happened between the two corporations. However, Monex first shrugged off the deal.

Under the heavy supervision of the FSA (financial services agency) in Japan, Coincheck, which was involved in a $530 million loss to hackers in January made a significant reshaping of the exchange sector of the country.

Therefore, as a result of the hack, various operators have been closed and also others reprimanded by the FSA after inspections. Matsumoto also had a clear emphasis on the transformation of the reputation of the exchange through the playing of rules.

He said;

“Registering the virtual currency exchange with the FSA and restarting the whole business will be about two months’ time, but this schedule is not yet confirmed by FSA, it is just our target goal, “And out of common sense, without registering as a crypto exchange, we would not restart the service at all.”

The reactions due to the sale amount online, Matsumoto denied the claims that the low price was due to the significant risk. He further explained;

“It is not that there is a big risk… we confirmed that the risk is limited in the course of due diligence (asset valuation) and I judged that I could make a profit.”

During the conference, Koichiro Wada who is coincheck CEO also attended and will step down once the deal is done.

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