bitFlyer

bitFlyer was founded in 2014 by Yuzo Kano, a former derivatives and bonds trader from Goldman Sachs.{{cite web | first=Oscar |last=Williams-Grut |title=Japan's biggest bitcoin exchange saw $150 billion traded in less than 2 months: 'December was certainly an interesting month' | website=Insider | date=January 24, 2018 | url=https://www.insider.com/bitflyer-bitcoin-volume-european-launch-2018-1 | access-date=June 3, 2020}} bitFlyer's cryptocurrency exchange was launched in April 2014, a few months before the once market-dominant bitcoin exchange, Mt. Gox, went out of business.{{cite web | title=Ex-Goldman Trader's Bitcoin Exchange to Fill Mt. Gox Void| website=Bloomberg | date=July 22, 2014 | url=https://www.bloomberg.com/news/articles/2014-07-22/ex-goldman-trader-opens-bitcoin-exchange-to-fill-mt-gox-void | access-date=February 6, 2020|first=Pavel|last=Alpeyev}} In 2018 the exchange stopped taking new customers after Japanese regulators accused the exchange of not taking actions to stop money laundering and terrorist financing.{{cite web | title=Japan's Biggest Bitcoin Exchange Suspends New Business| website=WSJ | date=June 22, 2018 | url=https://www.wsj.com/articles/japans-biggest-bitcoin-exchange-halts-new-business-1529655557 | access-date=March 16, 2021|first=Megumi|last=Fujikawa}} Regulators stated that most directors were friends of the CEO Yuzo Kano, a former Goldman Sachs trader.

By February 2016, it had 100,000 users and was processing about 7 billion yen ($64 million USD) in monthly cryptocurrency transactions, making it the largest Bitcoin exchange in Japan.{{cite web | title=ビットコイン取引所大手bitFlyerが貫く「経営の王道」 | website=Forbes Japan（フォーブス ジャパン） | date=February 25, 2016 | url=https://forbesjapan.com/articles/detail/11314 | language=ja | access-date=June 2, 2020}} It raised about $36 million USD in venture capital over three funding rounds. The company established partnerships with retailers, mobile app companies, and payment processors to facilitate smartphone-based cryptocurrency payments at retail locations.{{cite web | last=Hoshi | first=Akio | title=ビットコイン決済が身近に、bitFlyerがビックカメラ2店、Coincheckが26万店展開のAirレジで | website=TechCrunch Japan | date=April 5, 2017 | url=https://jp.techcrunch.com/2017/04/05/bitcoin_settlement_spreads_for_bitflyer_and_coincheck/ | language=ja | access-date=June 10, 2020}} bitFlyer also secured regulatory approval to sell cryptocurrency to institutional investors.{{cite web | last=Ponciano | first=Jonathan | title=With Regulatory Approval, BitFlyer Launches U.S. Crypto Exchange Targeting Institutional Traders | website=Forbes | date=November 28, 2017 | url=https://www.forbes.com/sites/jonathanponciano/2017/11/28/with-regulatory-approval-bitflyer-launches-u-s-exchange-targeting-institutional-traders/ | access-date=June 10, 2020}}

bitFlyer expanded internationally to the United States in November 2017 and to Europe in January 2018.{{cite web | title=Japan bitcoin bourse group stages Europe expansion | website=Financial Times | date=January 23, 2018 | url=https://www.ft.com/content/5bf1462c-ff84-11e7-9650-9c0ad2d7c5b5 | access-date=June 3, 2020}} By 2018, the company was processing 80 percent of bitcoin transactions in Japan and had grown to 150 employees.{{cite web | first1=Yuji|last1=Nakamura|first2=Hideki|last2=Sagiike|first3=Takahiko|last3=Hyuga| title=Ex-Goldman trader Yuzo Kano is hiring old rivals to build a cryptocurrency empire in Tokyo | website=Bloomberg | date=May 10, 2018 | url=https://www.japantimes.co.jp/news/2018/05/10/business/corporate-business/ex-goldman-trader-yuzo-kano-hiring-old-rivals-build-cryptocurrency-empire-tokyo/ | access-date=June 2, 2020}} In 2018, bitFlyer was one of six exchanges ordered to improve their procedures against money laundering, causing bitFlyer to temporarily suspend services while it implemented new systems.{{cite web | last=Varshney | first=Neer | title=Japan's biggest cryptocurrency exchange suspends new registrations amidst regulatory clampdown | website=Hard Fork | The Next Web | date=June 22, 2018 | url=https://thenextweb.com/hardfork/2018/06/22/bitflyer-japan-cryptocurrency-exchange/ | access-date=June 10, 2020}}

In 2019, bitFlyer created a subsidiary focused on blockchain technology and services.{{cite news|title=bitFlyer Sets Up Blockchain Subsidiary, Names Yuzo Kano as CEO|first=Celeste|last=Skinner|date=May 24, 2019|url=https://www.financemagnates.com/executives/moves/bitflyer-sets-up-blockchain-subsidiary-names-yuzo-kano-as-ceo/|newspaper=Finance Magnates}}

In May 2023, BitFlyer was fined by the New York Department of Financial Services (NYDFS) for failing to meet state cybersecurity requirements.{{Cite web |title=NYDFS Penalizes bitFlyer $1.2 Million for Violations to Cybersecurity Regulation |url=https://www.jdsupra.com/legalnews/nydfs-penalizes-bitflyer-1-2-million-4174551/ |access-date=2024-03-06 |website=JD Supra |language=en}}{{Cite web |title=Cybersecurity Consent Order Against Cryptocurrency Trading Platform |url=https://guidehouse.com/insights/financial-services/2023/nydfs-cybersecurity-consent-order-against-crypto-trading-platform |access-date=2024-03-06 |website=guidehouse.com |language=en}} The company was fined $1.2 million.

Users of the bitFlyer exchange can buy/sell cryptocurrency with each other, or buy/sell directly with bitFlyer itself.

bitFlyer's first service was its cryptocurrency exchange, which was initially focused on bitcoin. The company later added futures contracts and bitcoin derivatives to the exchange. As of 2017, 75 percent of transactions on bitFlyer are for derivatives, where users make investments based on their prediction of future bitcoin prices.{{cite web | title=Bitcoin feeding frenzy fuelled by 15 times leverage, says exchange | website=Financial Times | date=December 10, 2017 | url=https://www.ft.com/content/7f02cdba-dbd6-11e7-a039-c64b1c09b482 | access-date=June 10, 2020}}

bitFlyer first introduced its blockchain technology, called Miyabi, in 2016.{{cite web | last=Hoshi | first=Akio | title=bitFlyerがブロックチェーン技術Miyabiを発表、新アルゴリズムとスマートコントラクト搭載 | website=TechCrunch Japan | date=December 21, 2016 | url=https://jp.techcrunch.com/2016/12/21/bitflyer-announces-private-blockchain-technology-miyabi/ | language=ja | access-date=June 2, 2020}} In 2019, bitFlyer added other cryptocurrencies to its exchange, such as Ethereum and Litecoin.{{cn|date=May 2021}} The company also added features to pay for goods at retailers using cryptocurrency and to buy cryptocurrency using credit cards or points from loyalty programs.{{cite web | last=拓史 | first=吉田 | title=Eコマースはビットコイン普及の呼び水になるか：bitFlyer加納代表 | website=Digiday ［日本版］ | date=October 12, 2016 | url=https://digiday.jp/platforms/bitcoin-exchange-bitflyer-kano/ | language=ja | access-date=June 2, 2020}} In June 2020, bitFlyer introduced a blockchain-based voting service called bvote.{{cite web | title=ビットフライヤー、株主総会オンライン向け投票アプリ | website=日本経済新聞 電子版 | date=June 9, 2020 | url=https://www.nikkei.com/article/DGXMZO60158560Z00C20A6TJ1000/ | language=ja | access-date=June 11, 2020}} The company also introduced a blockchain consulting arm.{{cite news|url=https://www.financemagnates.com/cryptocurrency/news/japanese-crypto-exchange-bitflyer-launches-blockchain-consulting-service/|newspaper=Finance Magnates|date=April 27, 2020|first=Rachel|last=McIntosh|title=Japanese Crypto Exchange BitFlyer Launches Blockchain Consulting Service|access-date=June 10, 2020}}

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{{Cryptocurrency exchanges}}

Category:Cryptocurrency exchanges

[[Category:Internet technology companies of Japan]