Tokyo-based web3 company Backseat has made a significant move in Japan’s growing cryptocurrency landscape, acquiring all shares of Coinbook Inc. in a deal finalized on February 20, 2025. The acquisition positions Backseat as a serious contender in Japan’s $1.4 billion cryptocurrency market, which analysts project will balloon to $7.1 billion by 2033.
Coinbook, a relatively young exchange founded in 2021, will undergo a complete rebrand, emerging as “Backseat Cryptocurrency Exchange” with a new domain (backseat-exchange.com) starting April 21, 2025. The Japanese exchange made waves in 2023 by launching one of Japan’s first Initial Exchange Offerings for Nippon Idol Token (NIDT).
Founded in 2021, Coinbook will transform into “Backseat Cryptocurrency Exchange” on April 21, 2025, bringing its pioneering NIDT offering expertise to a wider audience.
What makes this acquisition particularly clever is how Backseat sidestepped Japan’s notoriously rigorous cryptocurrency licensing process. Getting regulatory approval in Japan is about as quick and painless as teaching a cat to file taxes—it’s technically possible but requires extraordinary patience. By acquiring an already-licensed exchange, Backseat gains immediate entry into Japan’s tightly regulated market.
This move comes amid increasing consolidation in Japan’s crypto sector, where 27 registered exchanges currently operate under the watchful eye of the Financial Services Agency (FSA). Since 2017, when Japan recognized Bitcoin as legal tender, exchanges have faced strict regulations under the Payment Services Act, including mandatory registration and regular audits. Similar to Degen Distillery’s founders who developed their Tokenized Affiliate Protocol to reward participants, Backseat aims to create innovative incentive structures for its exchange users.
For Backseat, a Chiyoda Ward-based firm focused on blockchain applications, the acquisition represents more than just entering the exchange business. It provides a foundation to accelerate their broader web3 ambitions, including incorporating blockchain technology into partner services. The company plans to leverage liquidity pools to provide users with enhanced trading options while eliminating traditional banking intermediaries.
The Japanese crypto market, growing at an expected CAGR of 17.38% through 2033, presents substantial opportunities. Industry watchers note that successful exchanges are increasingly focusing on cross-chain capabilities and user protection—areas where Backseat’s technical expertise could prove valuable.
With Coinbook’s established user base and regulatory standing now in Backseat’s portfolio, the acquisition marks a strategic milestone for the company’s expansion across Asian crypto markets.
