Yahoo Japan’s Entry into Crypto: What It Means for the Market

Yahoo Japan Jumps Into the Crypto Ring

In a surprising twist worthy of a blockbuster movie, Yahoo Japan is about to dive headfirst into the cryptocurrency waters. According to reports from the Nikkei Asian Review, the internet behemoth plans to open a crypto exchange sometime in 2019. It’s not just any splash either; they’re gearing up to acquire 40% of BitARG Exchange Tokyo for a cool 2 billion yen (that’s about $19 million for our dollar-denominated friends).

The Strategy Behind the Acquisition

Why would a giant like Yahoo want a slice of the crypto pie? Well, it seems they want to lay down roots in a market that’s blooming faster than spring flowers. Their strategy involves their wholly-owned subsidiary, YJFX, which specializes in foreign exchange. As soon as the ink dries on that 40% stake, executives will be dispatched to get everything set up for the launch a year later. It’s like they’re planting a tree, but with less water and a lot more technology.

Japan’s Regulatory Landscape

Japan has become a beacon of regulation in the cryptocurrency world, thanks to a licensing scheme introduced back in April 2017. Currently, 16 operators have received the green light to participate in the market, including powerhouse SBI Group. BitARG has been holding its license since December 2017, albeit with Bitcoin trading as its only offering. Imagine only having one flavor of ice cream at an ice cream parlor – not the best strategy for business!

FSA’s Watchful Eye

Meanwhile, the Financial Services Authority (FSA) has been more than a little busy in the crypto space. Just as Yahoo was making waves, Nikkei reported that the FSA is attempting to ban Binance, the world’s largest exchange, for not registering as an operator in Japan. Binance’s co-founder and CEO have denied those claims, but the ripple effect sent Bitcoin prices down 5%. Talk about a rollercoaster ride!

Binance’s Escape Plan

With all these regulatory hiccups, Binance is actively looking for a new home. CEO Changpeng Zhao pointed to Malta, describing it as a “very progressive” place for crypto and fintech. Guess it’s time for Binance to pack its bags and head for sunnier shores! Just remember to send postcards to your old friends.