Yahoo Japan confirmed on Friday its intention to buy a minority stake in a local cryptocurrency exchange, one that goes by the name of BitARG.
This significant development will lead to a domestic subsidiary of Yahoo Japan to acquire 40% of the digital currency exchange, paving the way for the technology giant to enter the crypto market, and becoming the latest major company to shrug off security concerns in this fledgling space.
Yahoo Japan is the biggest auction site in the country, and also remains one of the most popular websites in Japan, ranked 4th by user traffic.
ARG announced that it would accept the minority takeover from Z Corporation:
“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.”
And while the financial terms of the deal have been withheld, unofficial figures cited are likely to be between 2 billion and 3 billion yens.
Or anywhere from $18.5 million and $27.8 million.
Not a bad price to pay for the cryptocurrency exchange that has notably been granted a license from the country’s Financial Service Agency, or FSA as it is known. This allows BitARG the freedom to operate a domestic cryptocurrency exchange platform in Japan without any troubles.
As for Yahoo Japan, the company is set to make additional investments through other subsidiaries over the course of 2019 to scale up operations for BitARG.
Of course, the crypto space is heating up in the country, as it was exactly a week ago that major Japanese online brokerage Monex confirmed its 100% acquisition of Coincheck, an exchange that was in the news for all the wrong reasons after a $530 million hack.
And then we also have Line, the messaging giant.
With a market capitalization of over $9 billion and 600 million registered users, it has also filed an application with the FSA to launch its own cryptocurrency exchange in Japan.