Yahoo! Japan announced earlier this year that it is venturing into the cryptocurrency arena by launching its own cryptocurrency exchange which will focus on user-friendliness.
Yahoo! Japan revealed that it would venture into the cryptocurrency market by purchasing stake in a Japanese digital currency exchange that is licensed by the Financial Services (FSA). The latter is the country’s top financial regulator. However, the company also revealed that it would also launch an easy to use crypto exchange before the end of the year.
— Bitcoin News (@BTCTN) April 13, 2018
Yahoo! Japan was the result of a partnership between Yahoo! and Softbank
Yahoo! Japan is one of Japan’s most successful and long-running internet businesses, It came into existence through a partnership between Japan’s Softbank and Yahoo!. It has also managed to remain relevant and popular in its home country despite Yahoo!’s declining popularity over the years.
Yahoo! Japan confirmed through its subsidiary Z Corporation that it planned to invest in Bitarg Exchange Tokyo Co. Ltd. By purchasing 40 percent of its stake. Insiders revealed that the deal was valued between 2 billion and 3 billion yen which is roughly $18.6 million to $27.9 million. Bitarg’s parent company CMD Lab will retain ownership of the 60 percent remaining stake.
“We decided to expand the virtual currency business by collaborating with Z Corporation,” revealed CMD Lab executive Yoon Hee Yuan.
Unravelling Yahoo! Japan’s decision to acquire stake in a crypto firm
Kentaro Kawabe, Yahoo! Japan’s Vice President revealed the reason for his company’s decision to venture into the cryptocurrency market by acquiring stake in another exchange during a Sankei interview. Pointed out that the FSA’s strict cryptocurrency exchange registration process makes it hard for companies to venture into the crypto market without buying into an existing cryptocurrency exchange.
The FSA’s strict approach involves inspecting all the cryptocurrency exchanges in Japan and as a result, many of them have received business suspension and business improvement orders. This especially happened after the massive hack involving the Coincheck cryptocurrency exchange. Six cryptocurrency exchanges have already opted to wind up their exchange operations in the country. However, other companies such as Yahoo! Japan are clearly determined to be a part of the digital currency market in Japan.