Yahoo Japan is preparing to establish a cryptocurrency market, as shown in a written study by the Nikkei Asian Review.
As stated by the account, the Japanese online business will get a 40 percent stake in BitARG Exchange Tokyo the following month, and with the intent of starting an entirely operational cryptocurrency market on April 2019. The 40% stake will cost Yahoo Japan approximately 2 billion yen, or $19 million.
Unlike a range of unlicensed cryptocurrency markets in Japan, BitARG is licensed with Japan’s financial watchdog, the Financial Services Agency (FSA). Nikkei reports it is forecast for additional funds from Yahoo Japan early next calendar year.
The news is in the same period once the FSA is growing attempts to ensure trades have the right procedures in place to make certain shareholders’ assets are protected. Steps were taken by the financial watchdog follow after Tokyo-based cryptocurrency exchange Coincheck was hacked in January. It resulted in the theft of $530 million worth of NEM, making it the biggest hack of its kind for blockchain.
As a result, the FSA has since conducted onsite inspections at the 32 exchanges in the country, which eventually saw it ordering two exchanges to suspend operations until the 8th April — Bitstation and FSHO — due to a lack of management procedures in place. It also gave five other cryptocurrency trading platforms, including Coincheck, until the 22nd March to submit business improvement reports. Coincheck has since reimbursed 260,000 of its customers.
More recently, the FSA hit Hong Kong cryptocurrency exchange Binance with a warning over its lack of a license within the country. With several staff members in Japan, it was reported that the exchange was expanding without official approval. It has since announced that it will be opening a new office in Malta in a bid to sidestep regulatory trouble in Japan. Malta’s Prime Minister, Joseph Muscat, has welcomed the news that Binance will be moving to the nation.
Following the shutdown of cryptocurrency activities in China last September, Japan was considered a major player in the market. The country has been seen as quite favourable toward the industry, which can be seen by the fact that it introduced a licensing system last year. However, the hack at Coincheck has made authorities in the nation sit up and apply a firmer hand to the industry as it works at ensuring that investors’ money stays secure.