Japanese financial services firm Monex Group has unveiled its intention to acquire a majority stake in 3iQ Digital Holdings, a move aimed at expanding its foothold in the cryptocurrency market. The announcement made on December 28 highlighted 3iQ's expertise in pioneering the listing of some of the earliest spot Bitcoins and Ethereum-based North American exchange-traded funds (ETFs). 3iQ, headquartered in Canada, introduced a Bitcoin fund in 2020, well ahead of any potential approval by the U.S. Securities and Exchange Commission for similar investment products.
Monex outlined its strategic objective of bolstering its asset management division, citing the inclusion of 3iQ into its portfolio as a means to leverage the growing demand for crypto asset management services among institutional investors and global crypto exchanges. Yuko Seimei, CEO of Monex, articulated, "Our long-term strategy is to strengthen our asset management business, and by welcoming 3iQ to our group, we aim to achieve high growth by capturing the crypto asset management needs of institutional investors and crypto exchanges globally, which are expected to grow in the future."
Frederick Pye, Chairman and CEO of 3iQ, disclosed plans to collaborate with Coincheck as part of the acquisition deal. Coincheck, acquired by Monex in 2018, experienced one of the largest cryptocurrency hacks at the time, losing approximately $534 million worth of NEM tokens. The strategic partnership with Coincheck hints at potential synergies and combined efforts within the expanding cryptocurrency market.
The move comes amid regulatory changes in Japan's stance on cryptocurrencies. The Japanese government introduced a tax reform in December that allows companies to avoid taxes on "unrealized gains" stemming from cryptocurrency holdings. This development signals a shift in Japan's regulatory landscape, with Prime Minister Fumio Kishida's administration showing an increasing inclination towards embracing blockchain technology and Web3 innovations. Previously, several cryptocurrency firms had ceased operations in Japan due to regulatory challenges, but this recent reform indicates a potential shift in the country's approach to fostering crypto-related activities.
