It will all start next month when Yahoo Japan will officially have a share of one of the leading cryptocurrency exchanges in Japan, BitARG. This will be by way of acquiring 40% of BitARG Exchange. After the acquisition, Yahoo Japan will start building a fully packed cryptocurrency exchange during the early months of 2019. The whole platform will be hosted on the BitARG’s system. This was reported by Nikkei Asian Review.
With the Financial Services Agency (FSA) fully aware of the deal, Yahoo Japan is not speculating on a possible entry into the cryptocurrency exchange space but it has already started its journey into joining the more than 17 exchanges already registered by the Japanese financial watchdog.
A complete subsidiary of Yahoo, YJFX, will handle the 40% acquisition of BitARG. YJFX offers foreign exchange transaction services. A 40% stake in BitARG is equivalent to $19M (2 billion yen). This will comprise of newly issued stock and outstanding shares.
After the acquisition, “… YJFX executives and engineers will be dispatched to BitARG, where they will spend about a year developing the new exchange system. They will also work on a corporate governance structure, a customer management system and internal controls.” Reported Nikkei Asian Review.
The Financial Services Agency is mandated with regulating the cryptocurrency exchanges within their reach. For an exchange to operate in Japan, it has to be registered by the financial watchdog. This tough regulatory measures saw a top cryptocurrency exchange, Binance, on the wrong side of the table with FSA after it started its operations without a registration certificate.
Although Zhao ChangPeng has acknowledged being warned by FSA, ChangPeng has stated they are holding consultations with the financial watchdog. The $533M Coincheck hack in January made the FSA keen on cryptocurrency exchanges.
With Yahoo Japan being aware of what the Financial Services Agency requires from an exchange, theirs is just to comply.
With the experience that Yahoo Japan has in other fields, do you think that same experience will apply in delivering successful cryptocurrency exchange services?
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