Line Corp., the nation's largest messaging app, is close to obtaining a license to launch a cryptocurrency exchange in Japan, according to people familiar with the matter.
The Financial Services Agency could issue the license as early as this month, with exchange operations starting a few weeks after that, said the people, asking not to be identified discussing private matters. The service, which will be called BitMax, will allow Line's 80 million users in Japan to buy and sell cryptocurrencies including bitcoin and Line's own token, Link, one of the people said.
Line joins a crowded field of tech companies racing to roll out cryptocurrency products, including a move from Facebook Inc. earlier this week to create its own financial system with Visa Inc. and Uber Technologies Inc. For Line the pressure to succeed is particularly acute, as stagnant user growth has pushed shares to their lowest since listing in 2016. The company booked a loss last fiscal year as it stepped up investments into new businesses to reduce its reliance on advertising revenue.