Japan, one of the most developed countries and one of the world’s largest markets, is all set to launch its town cryptocurrency exchange namely Taotao. Formerly known as Bit Argo Exchange Tokyo (BitARG), this exchange will start trading a limited range of cryptocurrencies from May 25.
Yahoo Japan to Launch Crypto Exchange
Taotao is basically 40% owned by Z Corporation which is a subsidiary of Yahoo Japan. Taotao exchange will let investors trade Bitcoin and Ethereum and also allow them to enter leveraged positions for such cryptos as LTC, XRP, and BCH.
Last year in March, Nikkei reported that some employees of Yahoo! Japan would be working on BitARG. At the same time, Yahoo went on to announce that it would use its subsidiary Z Corporation to acquire a 40% stake in BitARG.
However, at that time, the price of the acquisition deal was not disclosed but according to some sources it was revealed later on that the deal involved 2 billion JPY which made around $19 million. This year in February, Bit Argo was rebranded as Taotao.
At the moment, the Taotao exchange is undergoing a pre-launch campaign in order to welcome new users on board. The campaign requires Taotao to offer 1000 JPY to 500 random users who trade over 250,000 JPY, which makes about $2,270, through its platform. This Japan-based exchange will start allowing investors to trade cryptos from May 25.
FSA Regulation on Cryptos
It is noteworthy to add here that Taotao exchange has received approval from Japan’s Financial Services Agency (FSA). FSA has made it obligatory for trading platforms to obtain a license to operate. This is because over $500 million worth of NEM tokens were stolen from Coincheck last year. Similarly, Zaif, a Japanese crypto exchange, also suffered a major hack, losing $60 million in Bitcoins.
FSA’s license is not easy to obtain; it has tightened its grip on crypto regulation. Last year, around 190 companies were looking forward to registering as cryptocurrency operators with the FSA. Fortunately, Taotao is among the few that manages to obtain the FSA license to list digital currencies against fiat currencies.
Cryptos: An Opportunity for Financial Institutions
Japan is known to be one of the most significant markets for cryptocurrency exchanges. The activity of five major financial institutions and technology conglomerates such as Rakuten, GMP, SBI Holdings, Bic Camera and Yahoo! Japan is strongly associated with the cryptocurrency industry.
The popular investor Ben Horowitz has a firm belief that investing in cryptos will probably result in a large benefit especially in the coming time, both in terms of profitability and strategy.