- Yuzo Kano intends on returning as CEO of BitFlyer to help the exchange grow on a global scale and lead it to an IPO.
- Kano plans to bring back innovation and introduce new services which he feels the current management has failed to do
- Major crypto exchanges cease operations in Japan citing severe market conditions
BitFlyer, the largest crypto exchange in Japan, is preparing to go public in an initial public offering (IPO) which could potentially end the endless crypto winter if Japanese investors re-enter the market.
As such, Yuzo Kano, co-founder of BitFlyer Holdings Inc., intends to re-appoint himself as CEO of BitFlyer to lead it to an IPO and rejuvenate what he calls a stagnant company. He plans to propose the proposal in a shareholders’ meeting next month. He hopes to resolve the disagreement with current management and other shareholders over control of the firm.
Kano stepped down as CEO three years ago due to a regulatory crackdown but intended to put the exchange back on the global map. In an interview with Bloomberg, he said, “I will make it capable of fighting on the international stage.”
Kano stated that since he stepped down as CEO, the company had ceased to innovate and introduce new goods and services. According to him, the exchange had also stopped seizing new business opportunities despite the company’s net income exponentially increasing to ¥12.5 billion in 2021 from ¥427 million in the previous year.
Based on the interview, Kano, who holds 40% of the exchange’s shares, claims he can change the situation and enhance BitFlyer’s revenue. To achieve that, in addition to pursuing an IPO in the coming months, he plans to introduce stablecoins, develop a token-issuance operation and possibly even allow access to its Miyabi blockchain technology to the public once he is reinstated as CEO.
Kano has addressed the media for the first time since a proposal to sell the exchange fell through last year. He stated that he stopped the sale because he believed Singapore-based ACA Partners was working with current leadership to keep him out. He added,” They wanted to get rid of me, both as a shareholder and the representative of a subsidiary.”
Despite the turmoil that has overwhelmed the company over the past few years, BitFlyer is still one of the largest cryptocurrency exchanges in Japan, with over 2.5 million accounts.
Japan’s Stance on Crypto
Over the past years, the crypto atmosphere in Japan has not been favorable since Japan’s Financial Services Agency enforced stringent and suffocating regulations. As a result, Japan has witnessed several firms that have announced the end of their operations in the country. This is despite having promised to relax cryptocurrency regulations by making it simpler to list virtual coins back in October.
In December, The Japan Virtual and Crypto Assets Exchange Association’s plan to allow crypto exchanges to list currencies without going through its rigorous screening procedure unless the tokens are new to Japan’s market was effected under Prime Minister Fumio Kishida’s administration.
Nonetheless, Kraken, a global cryptocurrency exchange, has ceased operations in Japan for the second time, citing a lack of resources in the poor crypto market. Another major exchange, Coinbase, publicly announced in January that it would cease operations in Japan and perform a complete evaluation of its activities in the country in response to severe market circumstances.
