Bitcoin Exchange bitFlyer Raises US$4m In Funding, Gets Vote Of Confidence

Bitcoin is slowly making headway in all kinds of places on this planet and it looks like digital currency is finally gaining a foothold in Japan.  Up until now, the only reason Bitcoin has ever been connected to Japan was due to the Mt.Gox exchange, a story most people would rather forget as soon as possible. However, bitFlyer might be the next Bitcoin success story in Japan.

Bitcoin Exchange Crowdfunding Platform bitFlyerBitFlyer

The Japanese bitFlyer platform provides an interesting combination of various Bitcoin services, neatly packaged into one platform.  Not only are buyers and sellers of Bitcoin able to use the platform for trading and exchanging purposes, but bitFlyer also offers its very own crowdfunding platform.

On the topic of crowdfunding with Bitcoin, there has been no “killer platform” managing to gain enough traction to make a name for itself.  The same can be said about bitFlyer, as their crowdfunding platform is not seeing much success either so far.  However, this entire situation could change in the very near future, thanks to a recent round of funding.

While Bitcoin regulation in Japan is one of the topics of debate at the moment, bitFlyer has secured US$4m in funding from Japanese venture capitalist firms.  Major players in the space, such as Mitsubishi UFJ Capital Company Limited and Dentsu Digital Holdings took part in the recent round of funding for bitFlyer.

This vote of confidence from one of Japan’s oldest leading venture capitalist firms could be a positive sign for both bitFlyer and Bitcoin adoption in Japan.  This round of funding marked the first venture into the world of virtual currencies by Mitsubishi UFJ Capital Company Limited.

Even though there is a point to be made regarding bitFlyer being just one of the many companies this group invested in, swaying them to look at a Bitcoin-related service is a feather in the cap of bitFlyer.  It will be interesting to see whether or not other Bitcoin companies in Japan will receive the same vote of confidence from established venture capitalist firms.

Improving Exchange Security and Management System

The value of US$4m might seem like a lot, but when it comes to startup companies, this amount of money is next to nothing.  According to bitFlyer CEO and founder Yuzo Kano, all of the raised VC funds will be used to improve the platform’s security and improvement the company’s management system.

“In addition, bitFlyer will take advantage of synergies available with each investment organization and will continue to promote customer base expansion, strengthen revenues, and expand our global business development.” – bitFlyer CEO Yuzo Kano told DigitalMoneyTimes.

This is the second round of funding completed successfully by bitFlyer, as the company secured nearly US$1m in funding during January of 2015.  Those funds were used to improve bitFlyer’s status as a comprehensive Bitcoin and marketplace, where novice users could find additional information about Bitcoin and the blockchain technology.

Venture capitalist funding in the world of Bitcoin is growing larger and larger every year.  So far, the total amount invested in the virtual currency space exceeds the total raised during the entire year of 2014.  With over 4 months left to go in 2015, it will be interesting to see whether this trend holds up or not?

Source: Press Release via Email

Images courtesy of bitFlyer, Shutterstock