SBI Holdings Buys Japanese Crypto Exchange, TaoTao, Just Days After Binance Deal Failed
- SBI Holdings announces the acquisition of Japanese crypto exchange, TaoTao Inc.
- TaoTao announced on Monday that an agreement with Binance had failed.
In an announcement on Wednesday, TaoTao Inc., a Japanese based crypto exchange funded by Z Holdings (formerly Yahoo! Finance), was wholly acquired by the Japanese conglomerate, SBI Holdings. The conglomerate is celebrating its second licensed cryptocurrency exchange, as it aims to dive deeper into digital currencies.
According to the statement, SBI Holding’s derivatives and foreign exchange wing, SBI Liquidity Market, acquired 100% of the issued shares on TaoTao, the latter becoming a wholly-owned subsidiary of SBI Holdings.
“We are pleased to inform you that we have decided to become a wholly-owned subsidiary of SBILM,” TaoTao statement.
The Japanese based Financial Service Authority (FSA)-licensed exchange joins SBI VC Trade, SBI’s crypto-focused venture capital arm, as the second licensed exchange owned by SBI Holdings. Both entities will provide crypto trading services to customers across Japan and build on the crypto ecosystem experience.
Following the acquisition, TaoTao aims at maximizing the strengths provided by SBI Group to provide customers with “the latest, safe and secure crypto asset trading services,” the statement further reads.
While no official reports have been released on the deal's value, sources close to TaoTao claim the total fee could rise to 2 billion Japanese yen, or approximately $19 million.
Binance deal with TaoTao fails.
The news comes barely 48 hours after the Japanese crypto exchange announced that the Binance deal to acquire it had failed. According to the report, the world’s largest crypto exchange was in discussions to buy TaoTao, but the deal fell through with no explanation offered.
Following the failed partnership, it is unlikely that Binance will revive its services to Japan residents this year after abandoning its services due to tough regulations from the FSA.