Japanese cryptocurrency exchange Taotao is expected to go live at noon on May 30, as per the company's official Twitter page.
What is Taotao, and how exactly is Yahoo involved?The Yahoo Japan-backed platform was first mentioned in March 2018, when local newspaper Nikkei Asian Review reported on the corporation's plan to acquire 40% of BitARG, a Tokyo-based cryptocurrency exchange, and to subsequently launch its own full-fledged platform "In April 2019 or later."
The FSA license is already in place - and Taotao is ready to tradeNotably, BitARG had been cleared to serve in the Japanese market at the time it was purchased by YJFX. The exchange secured its license with the Financial Services Agency - the national financial regulator - back in December 2017, meaning that Taotao automatically obtained the permission to trade cryptocurrencies.
It seems safe to assume that Taotao took the easy path to the local market - the FSA is known to have a tight grip on crypto exchanges operating on Japanese soil, and securing a license from scratch is a lengthy and complicated process.
As many as 190 new exchanges were reportedly pending the agency's approval to enter the market in December 2018.The strict scrutiny comes as no surprise, given that the country has witnessed the two largest crypto hacks in history: namely, last year's $532 million Coincheck break-in and the notorious crash of Tokyo-based Mt. Gox.In the wake of these security breaches, the watchdog has been taking numerous precautions, including on-site inspections of exchanges' offices and mandatory risk management system reports.
"The FSA's requirements for crypto exchanges are becoming more and more stringent and over time one can expect them to converge with the high standards of the traditional securities industry. Having said that, with the rising costs of compliance and cybersecurity eating away at crypto exchanges' profitability, the business model architecture for Taotao would need to have suitable margins to ensure its sustainability."
As of now, the majority stake in Taotao still belongs to CMD Lab, BitARG's parent company, which had wholly owned the exchange prior to the deal with YJFX. Neither company has responded to Cointelegraph's requests for comment.
According to Taotao's website, the new exchange will initially trade bitcoin and ether, with margin positions available in three additional cryptocurrencies: litecoin, bitcoin cash and XRP.Additionally, Taotao is a member of Japan Virtual Currency Exchange Association, a self-regulatory body comprised of domestic industry participants.
Taotao picks best time to enter the market - but harsh competition awaitsNotably, Taotao seems to be entering the market in the midst of reignited interest from Japanese cryptocurrency holders.
"I don't really see users switching accounts to Taotao from existing exchanges, but Taotao is uniquely positioned to bring new clients to the crypto space from Yahoo Japan's mainstream businesses."
Taotao: Yahoo-Backed Exchange Enters Japan Market Amid Renewed Interest in Crypto
gepubliceerd op May 29, 2019
by Cointele | gepubliceerd op Coinage
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