Line said in a statement that the Japanese financial regulator is reviewing the company's application for operating a virtual currency exchange.
The Financial Services Agency said on Monday that a hacker attack on the Coincheck exchange would investigate the security breach of all virtual currency exchanges in Japan, which is responsible for the registration of the new exchange.
Line said it will begin trading cryptocurrencies via the new company 'Line Financial', which also provides loans and insurance through its Line APP Line currently offers transfer and payment services to 40 million users through its applications.
Currently, there are 16 cryptocurrencies registered by the FSA and 16 are still awaiting approval while operating.
Line, which is controlled by South Korea's Naver Corporation and listed in the IPO in 2016, has overwhelmingly enjoyed the company's live chat software in Japan.