The search engine and technology giant Yahoo is planning to create its own cryptocurrency exchange, according to a report from Nikkei Asian Review. The company intends to gain a 40-percent stake in the BitARG Tokyo exchange and subsequently use the technology to release their own fully operational exchange in the first or second quarter of 2019.
YJFX, a company owned entirely by Yahoo Japan, will facilitate the transaction of $19 billion (2 billion Yen) in return for a 40% stake, which will be comprised of outstanding shares and recently listed stocks. After the next month, it is reported that Yahoo/YJFX will spend their time reshaping the corporate structure of BitARG regarding finance, hierarchy, and technology— the purpose of doing so it to get BitARG ready for the exchange Yahoo has planned. BitARG is an FSA (Financial Services Agency) licensed exchange service, meaning that it has been approved for use by Japan’s national financial watchdog.
The news may come as a shock to the market as Binance, one of the leading crypto exchanges, have recently moved their offices from Japan to Malta due to FSA restrictions. Japanese officials threatened legal action if Binance did not take steps towards gaining a license.
Since the Japanese exchange ‘Coincheck‘ fell victim to a coordinated attack, which resulted in a loss of $533 million, the FSA has been placing a huge focus on crypto-related industries in the country. They have also put in place stricter laws regarding exchanges that run nationally— BitStation and FSHO were recently forced by the FSA to take two-month suspensions.
The news of Yahoo’s own exchange could signify that Japan is still a crypto-friendly country and that its restrictions and licensing laws should not be seen as a deterrent at the moment.