Naver expands cryptocurrency business in Japan

Naver’s Japan-based subsidiary Line is expanding its cryptocurrency business, with another of its affiliates obtaining a cryptocurrency exchange license last week.

LVC Corporation, Line’s subsidiary operating its cryptocurrency and block-chain-related business, obtained a cryptocurrency exchange license from Japan’s financial authority, Friday.

Cryptocurrencies that can be traded on the exchange are Bitcoin, Ether, Bitcoin Money, Litecoin and XRP.

Line Tech Plus has been operating the Singapore-based BITBOX cryptocurrency exchange since July 2018, and listed its own cryptocurrency, Link, in October the same year. However, services have not been available in Japan and the U.S.

With its new license, Line is expected to establish a cryptocurrency exchange for Japanese traders, which may include the roughly 80 million users of Line’s messaging app.

Line estimates it has 187 million global users monthly, and 50 million users registered with its mobile payment service Line Pay.

After Line disclosed the developments, Link was traded at prices that jumped as much as 45 percent, Friday, from a day earlier, at around $8.83.

Line’s new cryptocurrency exchange is set to become the 20th licensed exchange in Japan.

Line is actively seeking partnerships for blockchain-based opportunities. In June, Line partnered with Visa on new blockchain and digital payment solutions. Nomura and Line are known to be discussing a business alliance on a blockchain-based venture.

Line has quickly been expanding its fintech businesses, targeting users of its messaging app. In July, it obtained approval from Taiwanese authorities to establish an internet-only bank.

The messaging giant has unveiled a plan to become a “lifestyle platform providing financial services.”

At its annual conference, June 27, Line stated it would begin a personal credit rating service. Another of the company’s plans is to launch Line Securities, a joint venture between Line Financial and Nomura Securities.