A subsidiary of Yahoo Japan is helping to build a cryptocurrency exchange.
According to a Reuters report, Z Corporation is taking a 40 percent stake worth between 2 billion yen to 3 billion yen in BitARG Exchange Tokyo. The exchange is expected to launch in autumn.
“By utilizing the service operation and security expertise of the Yahoo group, we support the operation of exchanges operated by BitArgo Exchange, Tokyo,” Yahoo Japan stated. The website also stated that it plans to provide “easy to use and safe” services on the exchange. An earlier report in Nikkei Asian Review stated that Yahoo Japan was planning to use BitARG's to launch its own cryptocurrency exchange in 2019.
Along with South Korea and the United States, Japan is among the top three markets for trading cryptocurrencies. According to a report released by the government earlier this month, Japan has at least 3.5 million cryptocurrency traders, with trading in margins and futures accounting for a major chunk of trading volume. In fact, investment firm Deutsche Bank has attributed the phenomenal rise of cryptocurrency trading volumes last year to Japanese day traders looking for quick profits in an economy wracked by a prolonged recession. The Asian country has also legalized cryptocurrencies as a medium for daily transactions. (See also: Where Is The Real "Bitcoin Capital" Of The World?)
The Z Corporation’s move to purchase a stake in the exchange comes as Japan’s cryptocurrency’s exchanges are cleaning up their act. A hack at Coincheck was the largest hack at a cryptocurrency exchange and provided the impetus for regulatory agencies to crack down on crypto exchanges. They recently came together to form a consortium for self-regulation. The focus on “easy to use” services will help simplify interaction and interfaces and could bring in more users to the service. (See also: Coincheck May Have Suffered Worst Hack In Cryptocurrency History).
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