Yahoo Japan Purchased Stock in Crypto Exchange
Yahoo Japan just acquired this Friday that it has bought a minority stake in a Tokyo-based cryptocurrency exchange, making it the latest major financial services provider in Japan to join the crypto industry.
Yahoo Japan is also Japan’s largest online auction site, announced that through Z Corporation, a subsidiary owned by them, bought a 40 percent stake in BitArg Exchange Tokyo. According to Reuters, the investment is valued at 2-3 billion yen (about $18.6 -$27 million). The exchange plans to launch its services in autumn of 2018, stated Yahoo Japan.
Yahoo Japan shares closed down at 0.2 percent, against a 0.6 gain for the benchmark Nikkei average.
“As a result of this capital participation, the Company will be able to utilize the service operation and security expertise of the Yahoo Japan Group, which will make it easier for customers to prepare for the start of the exchange service managed by the Company and to improve the operation after the commencement We will promote the provision of secure exchange services,” added the exchange operator.
Rumors of the purchase first appeared in March, though at the time it was believed that Yahoo Japan would make the acquisition via its forex transaction platform, YJFX, not Z Corporation, as it was previously stated.
Japan is a thriving environment for the crypto space, having more than three million local crypto traders. The news of this investment comes just days after the country’s financial regulator released a cease-and -desist order to crypto exchanges Eternal Link and FSHO to terminate their services because of non-complying KYC procedures.
Also this month, Monex Group, another important online brokerage based in Japan confirmed that it fully bought the cryptocurrency exchange Coincheck. This purchase was met with much criticism, as the exchange was the victim of a major hack earlier this year due to weak security protocols.
It was reported that Yahoo Japan will also make additional investments through other subsidiaries in 2019 to scale up BitARG’s procedures.