Rakuten Launches Cryptocurrency Trading

August 22, 2019 / by Crypto.IQ

Tokyo-based e-commerce giant Rakuten has just launched its crypto exchange for spot trading.

According to a press release published on Monday, Rakuten Wallet will now allow customers to trade in Ethereum (ETH), Bitcoin Cash (BCH) and Bitcoin (BTC) against the yen through a dedicated Android mobile application. An iOS version of the trading app is set to be released in early September.

The company also revealed its plans to separate customer deposited funds (assets) from its own, managing them under Rakuten Trust (its own trust company) and through a  Rakuten Bank savings account.

Japan’s equivalent of Amazon, Rakuten stressed that cryptocurrencies deposited by customers are going to be kept away from the internet in “a cold wallet” to reduce hacking risk. And for additional security, private keys will be managed via a multi-signature scheme, and a 2-step authentication will be required when logging in or withdrawing money or assets.

The firm said that customers are not going to be charged for making deposits or trades, which can be carried out 24 hours a day, every day of the year (unless when maintenance is taking place).

For fiat withdrawals however, Rakuten Wallet is going to charge 300 Japanese yen (which is around $2.80). Similarly, customers will be charged at the rates of: Ethereum at 0.01 ($2), Bitcoin Cash at 0.01 BCH ($3), and Bitcoin at 0.001 BTC ($10.70) when making crypto withdrawals.

This lack of transaction fees when trading cryptocurrencies would appeal to frequent traders.

Rakuten’s cryptocurrency exchange play first came into the open in March, when the company announced that it had received a license for its newly acquired entity, Everybody’s Bitcoin – which was purchased in August for a sum of $2.4 million. In May this year, the company entered into a partnership with CipherTrace, a blockchain analytics company, for anti-money laundering protections.