SBI Holding, one of Japan’s financial giants, abandoned its deal with China’s crypto money venture Huobi Group.
SBI Holding announced on Friday that they had canceled their deal with Huobi for the two crypto money exchange initiatives in Japan. The two firms first settled for the partnership last December, agreeing on the establishment of Japan Huobi and SBI Virtual Currency exchanges.
Japan’s financial regulator, the Financial Services Authority (FSA), has completed all controls for opening stock exchanges and trading platforms are expected to be operational this month.
However, in the latest announcement, Huobi announced that they will continue their stock exchange platform project after canceling the agreement. Explaining the reasons for the cancellation of the agreement, the firm later explained that they needed a system that would respond to higher security infrastructure, domestic and international regulations, instantly.
In this context, SBI Group will use SBI Holding to develop its own resources and to build security infrastructure. The decision comes just after a surge of checks against the crypto money exchanges in Japan after a $ 500 million NEM stolen from the Coincheck stock exchange.
During the past week, the FSA punished many local crypto exchanges for not having adequate security measures. He also announced that the launch of the SBI crypto currency has been postponed for further security updates in a statement made on February 20th.