Line Corp is expecting to soon got an approval for its own cryptocurrency exchange. According to Bloomberg to Financial Services Agency could issue the license this month already. The crypto exchange will be called BitMax. It would allow the social media company to incorporate its Link token, bitcoin and other currencies into its Line messaging app.
Line is currently being used by 80 million people in Japan. On top of that it has quite a decent position in several other countries in South East Asia, while the app is also available – but far less popular – in Europe and the United States.
BitMax will use the same systems as BitBox, a Singapore-based cryptocurrency exchange owned by Line. However, because of licensing issues BitBox is not available for Japanese consumers. So far, BitBox has not lived up to the expectations. According to Coinmarketcap there’s less than $100.000 in trading volume per day.
Interestingly enough, there already is a BitMax exchange on the market. On this exchange there’s billions of dollars of trade happening, but according to its own website 97 percent of all trades are between the stablecoins PAX, USDT and USDC. Suggesting it’s faking its trading volume tremendously.
Line Corp’s move into crypto is not unexpected. The company already has Link, a currency that can be used inside its social media app. But by adding exchange options to the app, it will become more prominent as a serious payment tool.
Just like Line Corp, other social media companies are also tapping into blockchain and crypto. Kakao Corp has launched a blockchain platform called Klaytn, where other services can build apps for. Of course there’s Facebook, that will introduce Libra to its Whatsapp, Instagram and Facebook users. BitTube is currently testing its BitTubers social media platform, while Block.One is developing Voice to be a blockchain-powered competitor to the ruling centralized social media, like Facebook and Twitter.
Also published on Medium.