Hong Kong Fund Scoops Up BTCC
BTCC, one of the largest crypto exchanges and mining pools in China and worldwide, has been acquired by an unnamed investment fund based in Hong Kong.
BTCC, the first Bitcoin exchange launched in China, announced on Monday its acquisition by a blockchain investment fund without disclosing the name of the Hong Kong-based buyer or the terms of the transaction. The deal comes amid a regulatory crackdown by the Chinese government.
Under its new owner, BTCC will prioritize international markets and its three flagship products - BTCC Pool, Mobi, and the crypto exchange. The units will be run by Denver Zhao, Mark Ma, and Aaron Choi, respectively.
BTCC Pool is one of the top mining pools, currently accounting for about 7% of all Bitcoin blocks mined, according to online sources. Mobi is a mobile wallet allowing users to move and store their Bitcoin. BTCC also runs its own crypto exchange where customers can convert their US dollars to Bitcoin and vice versa.
“We now have the resources to more fully realize our vision of safeguarding and stabilizing digital currencies’ blockchains.”
“Going forward, we’ll provide better, fairer, more transparent, and more comprehensive mining services to our customers worldwide,” he added.
BTCC co-founder and CEO Bobby Lee tweeted:
“Today’s acquisition is an incredible milestone for BTCC that validates all of our hard work over the past few years. I’m excited about the resources this gives BTCC to move faster and aggressively grow our businesses in 2018 and beyond!”
On Monday, China stepped up its crackdown on crypto-oriented operations. The government now wants to ban the access to local and foreign crypto platforms that allow Bitcoin and cryptocurrency trading. Last year, China shook markets by banning local crypto exchanges and initial coin offerings (ICOs).
At that time, Lee predicted that the crackdown was not a temporary move, contrary to rumors that said China could soon change its mind.
“I've heard variations of that rumor. I honestly don't think that will happen in any short time frame. In life everything is temporary, so if it gets lifted in five years or ten years, well technically they are right. But it's not in the time frame that we are thinking about – meaning two to three months. I don't believe it's a two to three months, even six months situation,” he said in October 2017.