Tokyo-based free chat app, Line is all set to launch a cryptocurrency exchange. To fend its competitors like Facebook, Line is leveraging its huge customer base to create more business opportunities by introducing a number of crypto-related features within its app.
Japan’s largest chat app to offer crypto trading service
Japan’s leading internet company and a popular messaging app, Line made the announcement of its plan to launch a cryptocurrency exchange. Today, the Tokyo-based chat app said in a statement that it has filed for an application to register a crypto exchange with the financial regulator of Japan. The application for the exchange is currently under review.
Line that has over 200 million monthly active users around the globe, has taken the step to embrace bitcoin and other cryptocurrencies in order to fend off the increasing competition from Facebook.
The company will launch a variety of financial services within the chat app including a place to trade the cryptocurrencies, loans, and insurance.
Line is already operating a payment service that has 40 million users and about $4 billion in annual GMV. This mobile payment service is within its chat app that is known as Line Pay.
Earlier this month, Bloomberg reported that Line is planning to move into the crypto market. Though there isn’t a clarity on what exactly what it will entail, as per the announcement, a marketplace would be inside the Line app where a user can trade crypto and get loans and, insurances. Line Financial, a subsidiary that been recently established would be operating all of these initiatives.
Opportunity for businesses to leverage crypto market through Line App
The company was quoted as saying:
“Line hopes to become a leader in the fintech industry as the world moves increasingly towards a cashless wallet-less society.”
With 30-40% of the world’s trading volume, Japan is one of the largest cryptocurrency trading markets. Moreover, in comparison with one of the world’s largest cryptocurrency exchange Coindesk that has about 13 million users, Line has an enormous audience of 200 million monthly users.
Having such a huge customer base, Line is not only limited to the general population but also caters to businesses including big industry names like Dior, Fendi and Louis Vuitton among other luxury brands, FC Barcelona, Hello kitty and much more. No doubt, Line’s foray into cryptocurrency market will subsequently benefit these associated brands as well.
From Line’s business perspective, apart from leveraging its huge customer base, Line will also be able to increase its user numbers which is flattening out.
It’s been only a few days that the Tokyo-based Coincheck lost about 523 million units of NEM in a hack. This announcement only means that the hacks haven’t made the commercial industry lost its interest in the cryptocurrency world. Moreover, a crypto step by Line, a popular messaging app giant will help in increasing the awareness and adoption of cryptocurrency significantly.
How do you think the entry into crypto market going to affect Line? Let us know your thoughts in our comment section below!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.