According to a new report published by Nikkei Asian Review, the Japanese branch of internet giant Yahoo is planning on launching its own cryptocurrency exchange in the region within the next year.
The report states that Yahoo Japan plans to start the acquisition process to purchase BitArg Exchange Tokyo in April, with an initial investment of 2 billion Yen – equal to 40% of the total price tag.
Yahoo Japan will buy the initial shares via its subsidiary YJFX, Yahoo Japan’s forex trading exchange, then make additional investments through its other subsidiaries over the course of the following year. Yahoo Japan already has executives from YJFX en route to start setting up operations and designing systems for a planned April 2019 launch of a full-scale cryptocurrency exchange using BitARG’s technology.
BitARG was an attractive acquisition for Yahoo Japan due to its pre-existing exchange infrastructure and the fact it already has a license from Japan’s Financial Services Agency, though the license is said to only cover Bitcoin trading at this time.
The JFSA has recently been in the news for cracking down on Japanese cryptocurrency exchanges, including serving Binance with compliance warnings earlier this week, causing the world’s largest cryptocurrency exchange by volume to consider moving its operations to the European nation of Malta. The JFSA has taken extra interest in establishing regulations in the cryptocurrency space, prompted by a major hack earlier this year that saw Japan-based cryptocurrency exchange Coincheck losing nearly $500 million in NEM tokens.
Yahoo Japan is just the latest in a string of major financial players throwing their hat in the cryptocurrency space.