Yahoo Japan would acquire a minority stake in BitARG cryptocurrency exchange. The Tokyo-based exchange confirmed in a press statement that Yahoo Japan, through a subsidiary, Z Corporation would buy 40% stake in the company which plans to start operations this fall.
The statement read:
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“As a result of this capital participation, the Company will be able to utilize the service operation and security expertise of the Yahoo Japan Group, which will make it easier for customers to prepare for the start of the exchange service managed by the Company and to improve the operation after the commencement We will promote the provision of secure exchange services.”[/perfectpullquote]
Yahoo Japan’s investment comes a week after Monex Group, an online brokerage wholly acquired Coincheck exchange. Coincheck were still reeling from a devastating cyber attack that in which it lost NEM tokens worth $550m million belonging to investors.
Although the deal was rumored (and denied) sometime in March, it still comes as a surprise since Japan recently strengthened the process for registering new exchanges like bitARG.
A wave of new Crypto Investments
Yahoo Japan and Monex are not deterred by the post-Coincheck crackdown of cryptocurrency businesses that which have seen 7 exchanges leave the country. Japanese FSA is seeking to prevent a repeat of the Coincheck heist. Apart from Yahoo Japan and Monex, SBI Holdings and Line Corp. are other mainstream businesses looking to branch out to blockchain.
Yahoo Japan has a big portfolio including Yahoo News, Yahoo Chiebukuro and Yahoo Auction, which is the country’s biggest auction site by sales. Neither Yahoo Japan nor bitARG has given details of the value of the investment. An unnamed source, however, told Reuters that the 40% stake would cost about 2 billion to 3 billion yen (which is about $18.6 million and $27.8 million).