After obtaining a Bit License, Japanese cryptocurrency exchange Bitflyer is now edging its way in the U.S. Only three such licenses have previously been granted. They are one of the most desired commodities in the world of cryptocurrency, entitling companies to provide bitcoin exchange services in New York. With this license in their portfolio, Bitflyer is now making its services available to clients in 41 states across the U.S.
In its country of origin, Bitflyer offers bitcoin trading, bitcoin cash, and the rather new Ethereum currency against the yen, boasting a 24-hour BTC volume totaling around $170 million USD. This number represents a staggering 96% of trade executed on the platform.
Pairing its experience and renown as the largest cryptocurrency exchange in the world with their recent permission to market their services in most of the U.S., the Tokyo-based enterprise will be able to effectively cater to the increasing demand forwarded by U.S. citizens for cryptocurrencies. This will ultimately lead to a significant increase in its client numbers.
Bitflyer’s declared its intent to expand into the U.S. market in August of this year.
With a Bit License in hand, the world-renowned Japanese platform is now fully equipped to demonstrate its ability in the U.S. However, in spite of its success in the Japanese market, where investors have reportedly employed the Bitflyer platform for trading assets around an estimated $100 billion USD, the crypto-exchange provider will have to overcome competition from Kraken, Coinbase, Bittrex, and Gemini – other platforms that have established a name and renown on the U.S. market in recent years.
The Japanese platform will not be facing any competition from neighboring Asian provider Bitfinex, seeing how they have begun severing their economic relationship with the U.S. market. Nonetheless, one of the more serious competitors that Bitflyer will have to face is Gemini, an exchange based in New York that has recently begun operating within the state of Oregon, thus increasing its number of covered states to an unprecedented 46.
The receipt of a Bit License from the Department of Financial Services in New York is in itself proof that Bitflyer is not only suited to cater to the needs of the U.S. market but also that it has allocated a vast amount of resources towards expanding into the United States. The company’s market share is also proof that it will most likely be a relevant competitor in the crypto-exchange industry, totaling 30% of the current volume of bitcoin exchange.
Bitflyer CEO, Yuzo Kano, stated that his company takes pride in having received a Bit License, framing the gesture as a “nod of approval” from New York – a regulator of financial services that has established itself as one of the U.S.’s most influential.
The market strategy outlined by the Japanese exchange will allow customers to solely acquire bitcoin at first, with plans to allow access to other forms of cryptocurrency over time. Moreover, Bitflyer attempts to incentivize potential clients by offering a 0% fee on all trading on their platform until the year’s end. These market tactics will hopefully go a long way towards overcoming such obstacles as Coinbase, an exchange that has monopolized cryptocurrency trading in the U.S. market and that boasts a significant 189 countries in its client portfolio.