By CCN.com: Yahoo Japan has tipped its hand to the upcoming launch of Taotao, its cryptocurrency trading platform. YJFX, Yahoo Japan’s foreign exchange (forex) platform, acquired a 40% share in Taotao, which was previously dubbed BitARG, in early 2018. Since making this acquisition, they have moved to set BitARG up as a Yahoo Japan branded subsidiary. The crypto trading platform is licensed by Japan’s FSA. According to a Google translation of the announcement:
“Notice of Opening Date: We have been waiting for the service of virtual currency exchange “TAOTAO” to be launched from noon (plan) on May 30, 2019! Please wait for a while until the sales start.”
Japan is one of the world’s leading jurisdictions for crypto but has developed trust issues with exchanges. Coincheck lost over $500 million in NEM and Mt. Gox lost hundreds of millions in BTC.
Binance remains the industry leader, presenting stiff competition to YJFX through both customer loyalty and the sheer number of supported cryptocurrencies.
Yahoo Japan acquired BitARG in 2018 and worked to close the deal, leading up to the expected exchange launch by the end of May 2019 despite the recent crypto bear market. Though the amount involved in this deal remains undisclosed, some reports say it involved JPY 2 billion (roughly $19 million). Over the last year as the deal has developed, YJFX obtained a license from the Japanese FSA.
Very few exchanges hold licensure from the FSA; bearing this certification can both help instill trust in the community and drum up business for the exchange regardless of market trends.
It is likely that Yahoo Japan can assist with pushing cryptocurrency into the mainstream by offering a simple, trusted outlet where users can trade easily.
Limiting the number of cryptocurrencies supported can help new users from feeling overwhelmed and may ease the learning process. Customers have to focus less on each crypto and more on learning the platform and the processes.
The exchange has been adapted to suit the needs of Yahoo Japan and its forex branch. It is rumored that Yahoo’s new exchange will largely focus on BTC and ETH trading. Options trading is expected to be available for LTC, BCH, BTC, ETH, and XRP after Taotao launches. The company has announced that these are their initial offerings. Other cryptos may achieve a listing on TaoTao as well.
Yahoo Japan pushed back the Taotao official launch from mid-May to the end of the month but never really said why. Yahoo seems ready for a definitive launch by May 30, however. Contending with BNB and other major crypto exchanges will likely be difficult, but Yahoo has years of search and preference data which should help them compete.
Last modified: May 20, 2020 5:54 AM UTC