The Japanese cryptocurrency exchange, BitARG has officially announced that Yahoo Japan is buying 40 percent stake in the exchange that will reportedly cost between 2 to 3 billion yen. After Monex, Yahoo Japan is the newest entry into the crypto industry from the mainstream big players.
Yahoo Japan- BitARG deal to cost between $18.6m to $27.9m
It has been confirmed that Yahoo Japan Corporation, a Japanese internet company is buying the minority stake i.e. 40 percent in the Tokyo-based cryptocurrency exchange, BitARG. Though there are no details on the investment, it has been reported that the deal will be closed on somewhere around ￥2bn to ￥3bn i.e. $18.6m to $27.9m.
After Coincheck’s acquisition by Monex for $34 million, Japan Yahoo is the latest Japanese giant to join the cryptocurrency industry. The deal signals support from the mainstream companies to the highly volatile and controversial digital money sector. It is expected that it will be launched in the autumn.
Yahoo Japan Corporation is a Japanese Internet company that has been a joint venture between American company Yahoo and Japanese company SoftBank Group which is a multinational conglomerate that operates in the information industry.
By capitalizing on the expertise of the Yahoo Japan, the exchange will be able to make the entire process smooth for the customers. Moreover, in the light of FSA’s strict regulations, the exchange will be able to promote secure exchange services.
After Monex, Yahoo Japan all set to officially enter the crypto industry
Earlier this month, BitARG denied the prospect of any such investment from Yahoo Japan, rather claimed that they have been exploring various other possibilities. Now, the exchange has officially announced that they have accepted the minor stake agreement that will allow them to use the security expertise and service operation of the Yahoo Japan. Local media sources have also reported that the agreement has also been reported to the Japanese Financial Services Agency.
In January, after the Coincheck hack that resulted in the loss of about $530 million worth of cryptocurrencies, the Financial Watchdog of Japan, FSA took serious measures and toughened its regulations to protect consumer interests. This move by FSA led many small exchanges to either seek a way out of the market or get into a partnership with big industry players.
The troubled Coincheck has been acquired by Monex Financial Group while other many other large business houses like Line Corp. and SBI Holdings Inc. are also trying to step into the crypto market. Similarly, Yahoo Japan has made its move into the crypto sector by buying the minority stakes in Japanese exchange, BitARG.
How do you think the entry of big players will help the cryptocurrency industry?
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.