Business & Finance

Yahoo’s Crypo Exchange: An Attempt to Revisit Glory Days

Taotao, a Japanese crypto exchange backed by Yahoo, has announced that it would launch its platform on 30th May, 2019, according to Twitter post. The exchange has been in development for more than a year in which Yahoo Japan, the former internet Goliath, owns a majority stake. The tweet read:

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

The company began registering customers for pre-launch on March 25, 2018. According to their website, it will initially offer a limited number of cryptocurrencies. Initially, the exchange plans to launch Bitcoin (BTC) and Ethereum (ETH) token on their platform; in the future, the company also wants to offer a leveraged position on Bitcoin Cash (BCH), Litecoin (LTC) and Ripple (XRP)

TaoTao’s Development

Yahoo Japan acquired BitARG in 2018 for reportedly 19 million dollars. The internet company then renamed the platform to Taotao and since then the company has received the Financial Services Agency’s (FSA) approval which is proudly displayed on the company’s website. The approval is in the name of BitARG, the company’s previous name.

READ ALSO: Bitcoin Hacks Led to Crypto Exchanges Scrutiny by Japanese Banking Regulators

In Japan, there are only a few exchanges that hold licenses from the FSA. Now Taotao has joined the list of an exclusive club in the Japanese crypto space. Considering Japan is the biggest market for bitcoin and cryptocurrencies, the fewer number of crypto exchanges gives Taotao a good business advantage.

This is Yahoo’s first move into the crypto space. The former internet giant has lost most of its glory on the global stage; however, Yahoo Japan seems to be performing better than ever. The company, now entirely owned by Softbank, is one of the most significant search engines in Japan. The immense popularity of Yahoo Japan is a good thing for crypto adoption. However, the country still has a problem with public crypto education. Yahoo Japan’s entry in the space will get more users educated about the crypto world from a trusted source.

Japan Tightens Crypto Regulations

Japan was the first country in the world to give cryptocurrencies a legal standing by accepting them as a tradable legal entity. The state has enacted many regulations to regulate the trade of cryptocurrencies; however, many analysts consider these steps as necessary and not at all restrictive to the crypto space, unlike other countries.

The law requires any crypto exchange working in the country to be registered with the Financial Services Agency as a Virtual Service Exchange Provider. The regulations also recognized bitcoin and other cryptocurrencies as a commodity and means of payment. Since 2017, the country has become one of the freest countries for bitcoin use. Japan right now has 19 registered cryptocurrency exchanges, although the number might also include the exchanges that are not in service.

READ ALSO: Blockchain is ‘Not’ the Enemy – Japanese Banks Prove That

The Japanese government has said that these regulations are in place to safeguard the customers from fraud and restrict the use of cryptocurrency in money laundering. Just recently, the lawmakers in Japan revamped the laws on security and advised crypto exchanges to revamp their security in the wake of recent hacks.

Japan has been at the forefront of the crypto revolution, being the alleged birthplace of bitcoin’s founder Satoshi Nakamoto. By being the early adopter of the digital currency revolution, Japan wanted to leverage the success of cryptocurrencies to fuel its economic growth. However, due to the recent drop in cryptocurrencies’ value, the country now is shifting its attitude towards them. The trend, however, seems not to affect the people who are still using bitcoin as a currency in the country.

READ ALSO: A Bitcoin Exchange’s Failure Left 1.5 Million People in Hanging

Tags

Shahzaib Zafar

Electrical Engineer, Crypto enthusiast, a tech nerd and a developer with a keen interest in blockchain, writes daily articles about bitcoin and cryptocurrencies for blockpublisher.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.