Tokyo: Yahoo!-Backed Cryptocurrency Exchange Taotao Set To Take-off In May

The interest in digital money started reshaping the economies of the world. There are many business giants making big moves to enter in the cryptocurrency space, in spite of, the constant volatility happening in the digital assets.

Last year in Q 2, 2018, one of the biggest internet companies Yahoo Japan Corporation, a subsidiary of Yahoo! and SoftBank Group (YJFX), entered into a deal with Financial Services Agency (FSA) approved and Tokyo based cryptocurrency exchange Taotao (formerly known as BitARG). At that time, Yahoo Japan acquired 40% stake with the investment of approx.. 2 billion Yen ($19 million) in the establishment, following a move to enter in a money-spinning crypto industry which is considered a huge investment.

Primarily, from May 2019, Taotao would be trading few digital assets on its platform to know the market response and users approach. These are Bitcoin (BTC) and Ethereum (ETH), with margin positions accessible in three supplementary cryptocurrencies: Litecoin (LTC), Bitcoin Cash (BCH), and Ripple (XRP).

As per TaoTaowebsite, interested users can sign up for an account and join a promotional introductory scheme which says pre-registration is free. The company is also offering to its new account holders from the pre-registration campaign 1000 yen as cash back and further, who trades a total of 250,000 Yen would be obliged with 10,000 Yen cash back. The cash back is for 500 people who would be picked through a lottery process.

As per the sources, Taotao is also getting good help from YJFX executives, developers, and engineers for the development of platform at its Tokyo based headquarters.

Reportedly, the internal team would also be formulating the corporate governance structure, organizing internal controls, and setting a customer management system to be in the good books of FSA.

The Japanese regulatory authority has already made it unavoidable and obligatory for the digital asset businesses and cryptocurrency exchanges to follow all the stringent and mandatory rules for the safety of the citizens. Especially, after the hack of Coincheck worth $533 million which stunned the authorities in January 2018. In an effort, to prevent this kind of risk and failure in the future, the FSA watchdog is constantly monitoring the crypto business units.

Although, on Jan. 31, Japanese online broker Monex Group and owner of Coincheck in its financial report on Q3, which is ending on March 31, 2019, fiscal year, mentioned that Coincheck has recovered its half of the losses in Q3, as compared with the earlier quarter.

New draft amendments have also been approved by the Cabinet of Japan regarding  Japan’s financial instruments and payment services laws. The new rule would limit the leverage in cryptocurrency margin trading in two to four times at the initial deposit. However, few new rules are yet to come into effect which is to be imposed in April 2020. 

All said and done, whether by the speculators, hackers, government policymakers, and last but, not least, big business groups an interesting position is that stepping up of Yahoo Japan Corporation would certainly impact the cryptocurrency exchange world. Especially in this jittery position where most of the business entities are dicey to jump in this revolutionary industry or those who are already here, it would possibly boost their confidence.

What our reader thinks it would be exciting to know to draw out a noteworthy assumption.