Yahoo Japan to Enter the Crypto Trading Fray with Nearing Taotao Launch

May 28, 2019 15:10 UTC

By CCN: 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.

How Long Has TaoTao’s Launch Been Progressing?

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.

What Does This Mean For Crypto Adoption?

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.

What Cryptocurrencies Will Taotao Support?

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.

This article was edited by Gerelyn Terzo.

Last modified: May 28, 2019 15:04 UTC

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Matthew is a startup coach, full-time freelance consultant, and fractional executive. He has helped clients raise more than $100 million in the ICO space since 2016. His expertise includes marketing, community building, and executive coaching. He has a passion for knowledge and all things finance. Matthew is currently working toward his Financial Modeling and Valuation Analyst certification. Matthew is a CCN Markets contributor based in Small Town Tennessee, USA You can find Matthew on Twitter at https://twitter.com/fintechproffitt (@FinTechProffitt) or LinkedIn at https://www.linkedin.com/in/fintechproffitt/ (@fintechproffitt) Or email him directly at: mproffittfreelance@gmail.com