Once more Japan has confirmed its reputation as a cryptocurrency-friendly country. Yahoo! Japan, through one of its subsidiaries, Z Corporation, has officially set to buy a minority stake in a Japanese cryptocurrency exchange BitArg confirming the rumors that were circulating around the cryptocurrency world in March. Rumors had it that the investment would be made, but nothing was officially confirmed. Earlier it was rumored that transaction platform was to be YJFX as opposed to the confirmed Z Corporation.
Last Friday, the company said it would purchase a significant 40% of the BitArg’s shares. Reuters reported that the Japanese tech giant would own between ¥2 to 3 billion JPY (which translates to around $18,6 to 27 million USD).
BitArg posted a notice on its website saying: “Today, the company decided to accept capital participation from Z Corporation.”
Yahoo! has said in a statement that they were hoping to “enter the blockchain related areas and virtual currency business where application is expected.”
The acquisition will allow Yahoo! Japan to launch its own cryptocurrency business. In the fall, Yahoo! Japan plans to launch an “easy-to-use exchange” for cryptocurrencies. The platform would be newly built but based on BitARG’s system.
BitArg has been licensed by the country’s financial regulator, Financial Services Agency (FSA), back in December. However, not all is for sure in the Japanese crypto space. The Yahoo! deal comes in shortly after Japan’s financial regulator had ordered Eternal Link and FSHO, two cryptocurrency exchanges, to close business due to inadequate KYC procedures. Following the hack of Coincheck, the FSA has been inspecting all cryptocurrency exchanges in the country issuing business improvement and suspension orders.
Six companies have already withdrawn their applications to operate crypto exchanges in the country. Time will tell whether Yahoo’s new investment was worth the money.
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