Company type | Private |
---|---|
Industry | Cryptocurrency |
Founded | January 9, 2014 |
Founder | Yuzo Kano |
Headquarters | Tokyo , Japan |
Area served | Worldwide |
Key people | Kuniyoshi Hayashi, Chief Executive Officer |
Website | bitflyer.com |
bitFlyer is a private company headquartered in Tokyo, Japan and founded in 2014. It operates one of the largest cryptocurrency exchanges with 2.5 million users [1] and develops other crypto-related technology.
bitFlyer was founded in 2014 by Yuzo Kano, a former derivatives and bonds trader from Goldman Sachs. [2] 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. [3] 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. [4] Regulators stated that most directors were friends of the CEO Yuzo Kano, a former Goldman Sachs trader. [4] 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. [5] It raised about $36 million USD in venture capital over three funding rounds. [6] The company established partnerships with retailers, mobile app companies, and payment processors to facilitate smartphone-based cryptocurrency payments at retail locations. [7] bitFlyer also secured regulatory approval to sell cryptocurrency to institutional investors. [8]
bitFlyer expanded internationally to the United States in November 2017 and to Europe in January 2018. [6] By 2018, the company was processing 80 percent of bitcoin transactions in Japan and had grown to 150 employees. [6] [9] 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. [10]
In 2019, bitFlyer created a subsidiary focused on blockchain technology and services. [11]
In May 2023, BitFlyer was fined by the New York Department of Financial Services (NYDFS) for failing to meet state cybersecurity requirements. [12] [13] The company was fined $1.2 million. [12]
Users of the bitFlyer exchange can buy/sell cryptocurrency with each other, or buy/sell directly with bitFlyer itself. [3]
bitFlyer's first service was its cryptocurrency exchange, which was initially focused on bitcoin. [9] The company later added futures contracts and bitcoin derivatives to the exchange. [1] [6] As of 2017, 75 percent of transactions on bitFlyer are for derivatives, where users make investments based on their prediction of future bitcoin prices. [14]
bitFlyer first introduced its blockchain technology, called Miyabi, in 2016. [15] In 2019, bitFlyer added other cryptocurrencies to its exchange, such as Ethereum and Litecoin.[ citation needed] 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. [16] In June 2020, bitFlyer introduced a blockchain-based voting service called bvote. [17] The company also introduced a blockchain consulting arm. [18]