Bitcoin Powerhouses Korbit And Bitstamp Included In Tencent’s Potential Nexon Deal
Bitcoin has long strayed off the beaten path. For the most part, the crypto ecosystem is maintained, managed, and propped up by slightly zany forward-thinkers, who often aren’t confined to the status quo. And as such, Silicon Valley’s giants, which have lost their startup luster and ambition for relentless innovation, have been slow to foray into this industry.
Yet, across the pond, in China’s equivalent of Silicon Valley — the special economic zone that is Shenzhen — rumor has it that Tencent may be looking into indirectly acquiring two of the crypto market’s most notable upstarts.
Tencent “Weighing Bid” For Bitcoin Startup Backer Nexon
According to a report from that it had made an acquisition of Korbit, paying $79.5 million for 65% of the Korean-centric crypto exchange.
Since the two business decisions, NXC hasn’t made any noticeable changes to the two popular platforms, which facilitate millions of dollars worth of crypto-to-fiat (and vice-versa) transactions each day. Yet, make no mistake, Nexon still has a stake in some of the world’s preeminent Bitcoin startups.
All this means that if Tencent goes ahead with its deal, it will indirectly acquire two crypto exchanges, marking the first time that the Chinese heavyweight has made a bonafide, high ticket foray into this nascent industry.
Crypto Concerns In China
While the aforementioned sources have accentuated that Tencent is seriously considering this deal, the potential acquisition could put the gaming company, valued at $400 billion, into a sticky situation with Beijing. China has recently been overtly against Bitcoin and other cryptocurrencies, doubling-down on its attempts to curb this asset class.
The nation’s regulations even made a move on blockchain in a Big Brother-esque fashion. In fact, the government’s Cyberspace Administration of China (CAC) mandated blockchain companies to store consumers data, while implementing back door access for censorship and ramping up KYC requirements.
Yet, as long as Tencent plays its cards right — not allowing Chinese consumers to access Bitstamp and/or Korbit, for example — there’s a chance that this deal can go through without any hitches. But will Tencent bite? Only time will tell.
Photo by Farzad Nazifi on Unsplash