LINE Close To FSA Approval, When Will The Messaging Giant Obtain A Permit?

Japan's biggest messaging application, LINE is very close to receiving an official permission to release a cryptocurrency exchange in Japan by the Japanese Financial Services Agency (FSA), a Bloomberg report states.

The FSA's approval will grant LINE with an administrative freedom to launch the crypto exchange platform, called BitMax, in around 14-21 days. As a result, LINE will offer crypto exchange services to its 80 million Japanese clients. The platform will enable LINE's clients to purchase and sell cryptocurrencies including Bitcoin and Line's own token, Link. Until now, Bitbox – BitMax's little brother only offered cryptocurrencies to clients outside of Japan due to the FSA decision to disapprove exchange operations that are domestically operating.

The reason behind FSA's showdowns is the Coincheck hack from January 2018 and the ongoing investigation that was conducted. Until March this year, only 19 crypto exchange platforms received a "green light" from Japan's FSA, including Rakuten's Wallet service.

Social media and messaging giants, such as Rakuten, Line, and Facebook, are all jumping on the crypto bandwagon. Facebook declared its new crypto venture Libra, a stablecoin giving users a chance to send and receive cash, to shop in the Marketplace and to contribute through usage of the Facebook`s Messenger and Instagram. Following FSA`s approval, tech moguls such as Yahoo Japan Corp., were allowed to launch their own crypto exchange platform – this happens an year after the approval has been granted.

Crypto's mass adoption by social media giants is one of the main reasons behind the bounce back in crypto prices this year, with Bitcoin dramatically increasing its price over the past few months. Line's own token – Link - has nearly doubled its price in June alone, giving it a market cap of about $30 million.