A major entertainment conglomerates in Japan, DMM, has announced to launch DMM Bitcoin, the cryptocurrency exchange of the entertainment giant, which will begin accepting applications from local traders and investors as early as January 11 this year, after the exchange is officially launched on January 10.
Being a financial institution regulated by Japan’s Financial Service Agency (FSA), DMM Bitcoin will be required to implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies and systems. In that case, DMM Bitcoin will likely carry out a rigorous verification process for traders, especially for large-scale and high profile individual investors just like other exchanges in the Japanese cryptocurrency market.
According to Bitcoin.com, the official statement released by DMM reads:
“DMM Bitcoin will launch a new service site for virtual currency trading on January 10, 2018, and we plan to start accepting account opening applications on January 11. There are 7 virtual currencies that can be traded, 3 currency pairs for spot trading and 14 currency pairs for leveraged transactions.”
When launched, DMM Bitcoin will only support seven hand-picked cryptocurrencies which include Bitcoin, Ethereum, NEM, Ripple, Litecoin, Ethereum Classic, and Bitcoin Cash. While the method the company utilized to come up with the list of the above mentioned seven cryptocurrencies remains unclear, DMM Bitcoin has only added cryptocurrencies with strong markets, large user bases, and daily trading volumes.
DMM Bitcoin would be competing against GMO and Huobi Japan/SBI. GMO Group, a multi-billion-dollar internet company based in Japan, launched a cryptocurrency exchange of its own last year, listing five digital assets, with a $90 million budget. But, over time, GMO Group expanded its cryptocurrency venture, launching a bitcoin mining center and mining equipment manufacturing factory to produce ASIC mining chips.
Given that GMO Group’s exchange targets high profile investors and institutional investors, DMM Bitcoin will directly compete against the GMO cryptocurrency exchange.
Based on the performance of GMM Bitcoin, the company may also pursue its previous plans to establish a “bitcoin mining farm,” an ambitious project to match the production volumes of major regions such as China.
“DMM Mining Farm” will operate a mass-scale, made-in-Japan quality mining farm whose operating size will be unmatched by any of the domestic operators…During the year 2018, DMM will be one of the 10 largest mining farms in the world,” said DMM.