Tokyo-based cryptocurrency exchange BitFlyer reported a 750 million Yen loss for the financial year 2019
According to bitFlyer business report, this Japanese cryptocurrency exchange lost about 750 million Yen ($ 6.9 million) in 2019. Meanwhile, the exchange business revenue in 2019 was $ 49.33 million. However, the closure in mid-2018 caused the exchange’s sales and return on investment to plummet, while operating costs hit $ 8.5 million.
BitFlyer’s revenue sheet | Source: BitFlyer
BitFlyer reported a 750 million Yen loss for the financial year 2019
After the Financial Services Agency (FSA) began monitoring bitFlyer’s activities in mid-2018, FSA found issues in the exchange’s security system. Moreover, the exchange was unable to prevent money laundering and hackers from gaining access to users’ crypto accounts. Some users even register themselves at bitFlyer by postal address.
At that time, bitFlyer declared the following:
“We would halt accepting new businesses. We started opening new accounts only after July 2, 2019.”
BitFlyer started accepting new customers after Bitcoin had topped near $14,000 in 2019 | Source: TradingView.com
This is the time when Bitcoin was trading 225 percent higher on a year-to-date timeframe. However, bitFlyer’s revenue began to decline after the Bitcoin price dropped from $ 14,000 to less than $ 6,500 in the second half of 2019. The reason is that when the price drops, the trading volume is also lower.
After facing difficulties, the Tokyo-based crypto exchange began to normalize its operations by adding new assets. In December 2019, bitFlyer listed XRP on its exchange. Four months later, they listed Basic Attention Token (BAT).
As of May 2020, as AZCoin News reported, bitFlyer has also become one of the few Japanese cryptocurrency exchanges to have commercial advertisements on national television. According to Coinpost, cryptocurrency exchange bitFlyer will start broadcasting a new program with more ads about Bitcoin. It is known that this is the first television broadcast in more than two years from the date bitFlyer announced this decision.
With Bitcoin-accepting higher than the ongoing financial crisis, the exchange is likely to return thanks to increased regional demand for cryptocurrencies.
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