On January 29, BTCC, one of China's earliest Bitcoin exchanges, announced its acquisition by a Hong Kong-based investment fund. The company explained that the move is part of a strategic shift to enable more aggressive global expansion in 2018.
Details of the Acquisition
BTCC, originally known as Bitcoin China, was founded in 2011 by entrepreneur Bobby Lee. It quickly grew to become the second-largest Bitcoin exchange globally by trading volume in 2014. However, after the Chinese central bank banned domestic cryptocurrency exchanges from conducting yuan-based trades in early 2017, many platforms, including BTCC, began seeking more favorable regulatory environments overseas.
The acquisition by an undisclosed Hong Kong investment fund marks a significant transition for BTCC. The new ownership aims to expand the company's operations across multiple continents, leveraging Hong Kong's relatively supportive stance toward digital assets.
Bobby Lee, co-founder of BTCC, described the acquisition as "an incredible milestone" that validates years of hard work. He expressed enthusiasm about the new resources available to accelerate the company's growth in 2018, particularly in expanding its mining pool, payment services, and exchange operations.
Strategic Focus and Leadership
Under the new ownership, BTCC will concentrate on international markets and three core products:
- BTCC Mining Pool
- Mobi multicurrency wallet
- USD-based exchange platform
The leadership team includes Aaron Choi, Denver Zhao, and Jack Ma, who brings experience from founding Alibaba and other fintech ventures. The company hopes Ma's background will help promote its products worldwide.
Jack Ma, Vice President of BTCC Mobi, highlighted that the Mobi wallet already serves customers in over 180 countries since its launch in March 2017. He emphasized that the new investment will drive efforts to achieve market leadership in digital currency payments.
Industry Context and Implications
BTCC's acquisition signifies the complete relocation of China's major cryptocurrency exchanges to regions with more favorable regulations. Other leading platforms, such as Huobi and Okcoin, had already moved overseas following the 2017 ban.
BTCC's mining pool remains operational, contributing approximately 3.6% to the Bitcoin network's total hashing power at the time of writing.
Calvin Cheng, a former Singaporean parliamentarian and advisor to Hong Kong blockchain investment funds, noted that the acquisition recognizes BTCC's strong brand and reputation. He expressed confidence in the company's potential for international success.
Frequently Asked Questions
What is BTCC?
BTCC, originally Bitcoin China, was one of the first Bitcoin exchanges in China, offering trading, mining pool services, and a multicurrency wallet.
Why did BTCC move out of China?
After the Chinese government banned yuan-based cryptocurrency trading in 2017, BTCC and other exchanges sought jurisdictions with more supportive regulations, such as Hong Kong.
What are BTCC's main services?
BTCC operates a mining pool, a global multicurrency wallet (Mobi), and a USD-based exchange platform.
Who leads BTCC after the acquisition?
The exchange is managed by Aaron Choi, Denver Zhao, and Jack Ma, who has a background in fintech and e-commerce.
How does BTCC plan to expand internationally?
With new funding and leadership, BTCC aims to grow its presence in payments, mining, and exchange services globally. 👉 Explore advanced trading strategies
What is the significance of Hong Kong for cryptocurrency businesses?
Hong Kong offers a more flexible regulatory environment compared to mainland China, making it attractive for digital asset companies seeking to operate internationally.