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Dragonfly Hones in on Bitget With $10M Investment

Bitget has received $10 million in funding from Dragonfly Capital at a time when Japan's FSA issued a warning to the crypto exchange

Photo by Bob Brewer / Unsplash

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Crypto trading platform Bitget has received $10 million in funding from Dragonfly Capital.

The global crypto VC firm made the announcement on 4 April, descirbing the injection as a "strategic investment" to support Bitget's ongoing expansion.

Funds will also go towards Bitget's CSR initiatives to boost crypto education and adoption.

Bitget, based in the Seychelles, says it is the world's fifth-biggest derivatives exchange and the world’s largest cryptocurrency derivatives copy trade platform with over 80,000 traders and 380,000 users following their trades.

This year, Bitget plans to double down on spot trading, launchpad and earning products.

Over the past two years, Bitget sealed partnerships with Argentinian footballer Lionel Messi and Juventus.

Dragonfly has built a lengthy portfolio of crypto companies including 1Inch Network, Animoca Brands, Amber Group, Ava Labs, Matrixport, Polygon and previously Babel.

Japan vs Bitget

Japan’s Financial Services Agency (FSA) recently issued a warning to four cryptocurrency exchanges, including Bitget, to cease offering services to Japanese residents.

Bybit, MEXC Global and Bitforex were also instructed to adhere to Japan’s regulatory standards and stop providing services to Japanese citizens.

The Japanese regulator claimed that the companies violated the nation's fund settlement laws by “conducting crypto asset exchange business without registration.”

Read more: Japan's FSA Cracks Down on Unregistered Crypto Exchanges

It added that the number of unlicensed traders “does not necessarily indicate the current state of unregistered business.”

Japan vs crypto

Just like its regional neighbours, Japan is taking a cautious but steady approach to crypto, with three major banks in the country preparing to pilot their stablecoins on a public blockchain.

Tokyo Kiraboshi Financial Group, Minna no Bank and Shikoku Bank will issue their own stablecoins via the Japan Open Chain, a public blockchain fully compatible with Ethereum that complies with Japanese law developed by Web3 infrastructure company GU Technologies.

Read more: Japanese Banks to Pilot Stablecoins on "Japan Open Chain"

The test will initially focus on the issuance and remittance of "electronic money," with future plans for a stablecoin system involving local governments and private companies.

Since Prime Minister Fumio Kishida’s appointment last year, Japan has been trying to drive Web3 adoption. The country recently established a Web3 policy office under the Ministry of Economy, Trade, and Industry (METI).

Related: Japan Finance, Tech Firms Collaborate on "Metaverse Economic Zone"

Earlier this year, Japan's Financial Services Agency (FSA) announced that it will allow stablecoin trading by June 2023.

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