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Yahoo Japan Confirms Purchase of 40% Stake in Crypto Exchange

As reported by EbitNews, Yahoo Japan has been interested in breaking into the cryptocurrency space for some time. Now, it has been confirmed that the tech giant’s subsidiary is moving forward with the acquisition of a 40 percent stake in a cryptocurrency exchange based out of Tokyo called BitARG. This is a huge step for the cryptocurrency space in Japan since Yahoo is currently one of the top five most used sites in the country.The exchange, BitARG, made an announcement marking the purchase by Yahoo Japan and to explain its new business plan going forward:            “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.”While most of the exact details of the deal have been kept confidential, Reuters cited unofficial reports that the price for the 40 percent stake was upward of 2-3 billion yen (~$18.5 million – $27.8 million). A hefty sum, but one which seems justified given the strict regulatory policies Japan has instituted on cryptocurrency exchanges.The move by Yahoo Japan to purchase a minority stake in a cryptocurrency exchange is its way of breaking into the exchange market without having to take on the responsibility or the effort of applying for an FSA license to operate within the country. Their philosophy is that since BitARG already possesses the licensing, it only follows that the most logical option would be to invest in their platform and build it out to be competitive.This wasn’t the only exchange related purchase made recently in Japan. Monex just confirmed its purchase of Coincheck, the exchange that experienced a breach which caused over $500 million worth of NEM coins to be stolen. These moves by large groups to throw money behind cryptocurrency exchanges is a signal that there is likely to be another boom in trading once those exchanges are brought online closer to or in 2019.