According to an official announcement, Japan’s leading FinTech company and think tank behind the country’s most popular personal budgeting app, Money Forward Inc., has dropped its plans to launch its own cryptocurrency asset exchange.
The initial plans of Japan’s Money Forward cryptocurrency exchange
Previously, in May 2018, Money Forward Inc. was reported to have formulated a new subsidiary, MF Financial Co., for the development of their new crypto exchange project. They also had plans to develop a crypto media platform and a digital assets payment system. The company was also working to build more advanced solutions for dealing with cryptocurrencies which includes various analytical tools and automated payment systems.
Money Forward’s latest developments
However, in view of the recent bear market, they have now revealed that they are canceling the project. The company said that there is no profit in investing in the business as the risk of profitability has been higher, and the market has also cooled rapidly.
They also stated that the cost of developing a stable and robust system for traders and consumers has risen as there is much risk of money laundering and hackers surround the business.
The services provisions of Onbit, Money Forward’s crypto media platform will also dissolve by the end of May 31. Despite canceling the crypto exchange development project, the firm assured that the blockchain technology development program would not stop.
Earlier this year, Japan Virtual Currency Exchange Association (JVCEA) had given Money Forward’s subsidiary second-tier membership. The association developed this membership tier for the companies which are interested in applying to the Financial Services Association for an official crypto exchange license. The JVCEA was formed in March 2018 and was established to protect the standards of investors. In October 2018, the company got a formal self-regulatory status by the Financial Services Association.