Yahoo to launch a crypto exchange in 2018
The Japanese wing of Yahoo is working on a new cryptocurrency exchange that it plans to launch this year, according to reports.
An article that appeared on Nikkei Asian Review suggests that the internet firm will buy a 40 percent share in BitARG Exchange Tokyo next month.
The plan is to build a new exchange to be completed in 2018 using BitARG’s technology.
BitARG has already been awarded a license by Japan’s financial regulator, the Financial Services Agency (FSA), the reports states.
The company is expected to receive further investment in early 2019 from Yahoo Japan.
The share purchase will be made through Yahoo Japan’s subsidiary YJFX, which is a forex transaction platform.
According to Nikkei, the firm is investing 2 billion yen ($19 million) for the 40 percent state.
A brand new cryptocurrency exchange
A team from YJFX is due to begin development of the new exchange immediately after the purchase completes.
The team will also be tasked with designing systems for security, customer management, and corporate governance.
The importance of exchanges registering with the FSA to conduct operations in Japan has been highlighted by news that Binance has been facing issues.
Binance is the world’s largest cryptocurrency exchange, but reports state the company has yet to comply with the stringent new regulations for operating in Japan.
The Hong-Kong-based exchange has reportedly just received a warning for its lack of registration in Japan from the financial watchdog.
Binance’s CEO, Zhao Changpeng, confirmed the company is in receipt of the warning letter and is in dialogue with the agency.
The FSA has been cracking down on domestic cryptocurrency trading platforms since the $533 million hack of the Japanese exchange Coincheck in January.
The agency is also demanding security overhauls on exchanges that are yet to be registered.
Early this month, the government-backed organization issued month-long trading bans for two exchanges in the country.