Despite the turbulent start to 2018 that many cryptocurrencies have experienced, the market still continues to attract investments from numerous sources. One particular area of interest is in cryptocurrency exchange; platforms that enable traders and investors to buy and sell cryptocurrencies. According to the news coming out of Japan, it appears the Japanese division of the Internet Search Engine firm is preparing to make a foray into the business of cryptocurrency exchange.
Yahoo Japan and BitARG Exchange Tokyo
The Nikkei Asian review on Friday, 23rd March 2018, that Yahoo Japan has made plans to acquire about 40 percent of BitARG Exchange Tokyo. According to the article, the acquisition is scheduled to commence in April 2018. The tech firm plans to build its own cryptocurrency exchange framework on the existing BitARG system but will launch its own legacy platform as from April 2019.
Yahoo Japan plans to acquire 40 percent of BitARG shares via its YJFX subsidiary which operates forex transaction. According to the details of the deal made public, YJFX will pay the sum of 2 billion yen which is about $19 million to acquire 40 percent of BitARG shares. BitARG is already a Financial Services Agency (FSA) of Japan-licensed cryptocurrency exchange platform. The 40 percent stake being acquired by YJFX on behalf of Yahoo Japan is made up of outstanding company shares and some newly issued company stock.
In addition, Yahoo Japan also plans to make further investments in BitARG. These investments will be made between January and March 2019 but will likely be via another Yahoo subsidiary company. As part of the process, both Yahoo Japan and BitARG have submitted their capital tie-up schedule to the FSA.
Building the Yahoo Crypto Exchange Platform
After the acquisition process has been finalized, technical experts from YJFX will be attached to BitARG where they will commence the design of the new exchange platform. While building the new platform, the team will also work out modalities for internal controls, as well as a framework for customer service and corporate governance. The development process is expected to take about 12 months to complete.
This move by Yahoo Japan is yet another addition to the expanding cryptocurrency exchange arena in Japan. The country has become a mecca of sorts for crypto exchange platforms particularly in the Asian theater. The extensive cryptocurrency crackdown by the Chinese government has forced many platforms to move their operations to more friendly climes.
Recently, however, Japanese authorities have begun to pass strict regulatory laws in order to sanitize the market in Japan. In the aftermath of the Coincheck hack, the FSA has come down hard on a number of cryptocurrency exchange platforms. News broke out recently that the FSA was moving to sanction Binance, the largest cryptocurrency exchange platform in terms of market cap due to the fact that it was operating in the country without a license.
Yahoo Japan will be looking to obtain the necessary regulatory clearance from the FSA in order to operate in the country. Right now, there are 16 registered cryptocurrency exchange platforms in the country with many more pending applications with the FSA.