HiroseFX announces plans to launch virtual currency business
The establishment of the virtual currency trading subsidiary is scheduled for February this year.
Japanese online trading company Hirose Tusyo Inc (TYO:7185), also known as HiroseFX, has just announced its plans to launch a virtual currency trading business.
The decision for the expansion was made earlier today at a Board meeting, the company explained in its announcement. The broker, which is currently focused on foreign exchange, says the launch of the new business is expected to have a positive impact on its financial results.
The establishment of the new subsidiary is scheduled for February this year, whereas the start of its operations is expected at some point during the fiscal year that ends on March 31, 2019. The new unit will be 100% owned by Hirose and will be based in Osaka City. Its initial capital is set at JPY 50 million.
HiroseFX’s move is barely surprising given the push by other online trading companies in Japan into cryptocurrencies. In May last year, GMO Internet Inc. (TYO:9449) launched its virtual currency trading business GMO Coin. Its plans to set up a Bitcoin mining business were announced in September last year. Another Japanese company with an FX business – DMM.com, has also made a push into the virtual currency segment.
The binary options business of HiroseFX has been affected by the move by certain online stores to clamp down on binary options mobile applications. In September last year, Hirose confirmed LION BO application for iOS devices can no longer be downloaded from the iTunes Store, due to changes in the store policy. A trader that deletes the app and tries to re-download it will not be able to do so, the broker warned.
Several months before that Apple Inc. (NASDAQ:AAPL) had introduced changes to its iOS developer guidelines, saying that “Apps that facilitate binary options trading are not permitted on the App Store”. Ever since, most companies offering such apps on the App Store have been reluctant to provide any information on whether their apps were affected by the new policy. As a general rule, users have to check themselves whether a given application is available.
