BTCBox is a centralized cryptocurrency exchange founded on March 6, 2014. The platform is based in Japan (address: BRICK GATE Kayabacho 5F 2 home 8-1) and is operated by BtcBox Co. Ltd. The “Company Profile” page on the platform’s website states that the business is registered as a cryptocurrency exchange with Kanto Finance Bureau under No. 00008. It also holds a membership (No 1008) with Japan’s self-regulatory organization - Japan Virtual Currency Exchange Association (JVCEA).
The exchange does a good job of providing information about its history. According to the details, shared on its website, the platform was founded by David Zhang in 2014. However, five years later, due to corporate restructurings, BTCBox was headed by a new CEO. According to an interview on the company’s blog, since May 2019, the exchange is run by Harutoshi Tsuji. He claims to have worked in the banking sector for over 20 years with an additional 15 years in investment securities. The exchange’s CEO admits to working as a derivatives and FX dealer.
At the time of this writing, the exchange’s website points out on having 40 employees. However, BTCBox lacks a LinkedIn page which makes it hard to get familiar with the company’s employees and their background.
Although the exchange’s website is present in English and Chinese, at the time of this writing, it is clear that BTCBox emphasizes on Japanese clients (US citizens can’t use the service). The platform serves both – individual and corporate clients, and it supports bank deposits in Japanese Yen.
At the time of this writing, the exchange offers just four cryptocurrencies – BTC, ETH, BCH, and LTC, which is one of the main complaints of users online. This confirms the main goal of BTCBox - to provide a user-friendly way for beginners to invest in digital currencies and not get into too sophisticated trading. Yet, it is worth noting that BTCBox also offers margin trading (1:3 in leverage). However, before being allowed to trade on margin, one should pass a manual verification, which, according to reports, may take several days.
It is worth noting that the exchange’s website supports a poorly-translated English version that often makes it hard to understand the point the authors of the texts try to make. This becomes clear also when taking a look at the existing customer reviews. Users report a lack of adequate support in English, which may potentially be explained by the fact that BTCBox targets mostly Japanese investors. However, on its website’s homepage, it claims that it offers “courteous customer support” via telephone, mail, and webchat. It also promises speedy troubleshooting. Yet, it remains quite strange why BTCBox doesn’t support a Telegram channel to ease the communication with its clients.
Regarding the employed security measures, the exchange’s team promises that they are “not only monitoring trading system for 7x24 hours”, but also have their engineers ready to take an “emergency response when they receive the emergency alarm from system.” BTCBox employs some of the standard security measures, such as two-factor authentication and SSL encryption. It also adds that it stores “most of customer assets in the off-line wallet.” Similar to many other exchanges, it requires its clients to adhere to a strict KYC procedure. Once you sign up for the platform’s services, you need to verify your identity by uploading a valid document. However, it has an additional step that is somewhat untypical for the way this process is conducted within the industry. After the support representatives verify your information, they will send you a postcard with a one-time password. This step is similar to the way services like Google MyBusiness are verified, which is why you should make sure to include your current address. Next, you will have to input a transaction password, and you will be then good to go.
The fact that BTCBox was licensed by FSA brings credibility to the table. Nowadays, not many cryptocurrency exchanges are regulated by a national watchdog. However, at the time of this writing, the exchange lacks any online user reviews. There are no threads or opinions regarding the exchange’s quality of service on sites like Reddit, Bitcointalk, and Trustpilot.
At the time of this writing, BTCBox doesn’t have a history of government or regulatory investigations, as well as hacker attacks or security breaches.