Yahoo Japan has decided to buy a minority stake of 40% in a cryptocurrency exchange based in Tokyo called BitARG. This is significant news, as it looks like some traditional companies are starting to enter in the cryptocurrency game.
This is paving the way for the tech giant Yahoo to enter in the cryptocurrency market. Yahoo is currently ranked as the #4 most popular site in Japan, and #40 worldwide, also being the biggest auction online site in the whole country. Yahoo Japan will start to provide support for the company as a partnership for the stakes that were bought from the company.
While the terms of the negotiation were not released to the public, Reuters has reported that the value of the transaction will likely be between 2 and 3 billion yen, which is somewhere between 18.5 and 27.8 million dollars.
The reason why Yahoo Japan has decided to acquire the shares of the company are most likely because the Financial Service Agency (FSA) of the country has given BitARG the rights to operate in the country and perform domestic transactions using cryptocurrency.
Yahoo Japan Isn't The Only One Entering Crypto Market
Yahoo is just the latest example of many giants of the traditional finance companies that are entering in this market in Japan. A week ago, a major Japanese brokerage company called Monex bought 100% of Coincheck’s actions. While Coincheck was heavily criticized for its lack of security, losing $530 million in NEM tokens in January, Monex was still interested in the acquisition.
The Japanese giant SBI is also set to launch its own cryptocurrency exchange soon. Another giant that is trying to enter in this market is Line, which has a market cap of over $9 billion USD and more than 600 million users registered. It has recently filed an application with the FSA to start its own crypto exchange business in Japan.