The Japanese arm of internal giant Yahoo is planning to launch a new cryptocurrency exchange in 2019, according to a new report published by Nikkei Asian Review.
Yahoo Japan has begun the initial stages of an acquisition of Tokyo-based cryptocurrency exchange BitARG. An initial investment of two billion yen – 40% of the total purchase price – will be made via Yahoo Japan’s Forex trading platform subsidiary, YJFX, while additional investments will be made throughout the next year through additional Yahoo subsidiaries.
Despite the buyout not concluding until 2019, Yahoo Japan has already tasked YJFX executives with establishing customer service and other business operations to be layered over BitARG’s existing exchange technology and framework, with the goal of launching their own cryptocurrency exchange in April of 2019.
Rather than launching a new exchange from the ground up, Yahoo Japan will seek to build upon BitARG due to BitARG already having in its possession a sought-after license from Japan’s Financial Services Agency. Having such a license ensures that Yahoo Japan is in compliance with Japan’s financial regulatory entity from day one.
Complying with the JFSA is crucial for cryptocurrency exchanges in the region, as they have recently been cracking down on unlicensed exchanges after one of the largest exchanges in the country, Coincheck, suffered a massive hack where $500 million in NEM tokens were stolen. The JFSA made headlines last week for serving the world’s largest cryptocurrency exchange by volume, Binance, with a compliance warning, prompting Binance to move its operations to the European island nation of Malta. Earlier in the month, the JFSA served exchanges Bit Station and FSHO with month-long suspensions for non-compliance.