BitARG exchange from Tokyo announced this Friday that Yahoo Japan would invest in their crypto exchange in order to bring Yahoo’s security expertise, as well as a service operation. Yahoo will own 40% of the new exchange, while the remaining 60% will still belong to CMD Laboratories, BitARG’s parent company.
Yahoo Japan’s investment
The two companies have yet to provide any official details involving their deal. However, an anonymous source has provided certain financial details, and they claim that this transaction consists of an amount between 2 billion and 3 billion yen. This amount is equal to $18.6 million to $27.9 million.
Yahoo Japan has issued their own statement, in which they say that the company will enter the blockchain-related area and that this area of cryptocurrency business has a strong need for applications. Additionally, the company says that their security expertise and the service operation will significantly improve BitARG Exchange’s business practices.
This is seen by many as a curious development, especially because Yoon Hee Yuan, BitARG’s executive, recently denied any rumors that the exchange plans to sell its stock to Yahoo Japan. At the end of last month, Yaun stated that BitARG is exploring different possibilities involving partnerships and investments. Such opportunities were considered in order to strengthen the management of the new platform, as well as the security and practices of the platform itself.
BitARG’s plans for the future
The new crypto exchange that BitARG is planning to launch is expected to become operational in the fall of this year. According to the company’s plans, it will mainly deal with Bitcoin. There are also additional investments planned that are supposed to come early in 2019, and several Yahoo subsidiaries will make those. After those are made, the company’s final product is expected to be launched, which should happen in April 2019.
The new crypto trading platform was already approved by Japan’s FSA (Financial Services Agency) back in December. Right now, the company is finishing final touches and is taking care of the details, so that everything will be ready once the platform goes live.
The situation with other exchanges
Apart from BitARG, several other exchanges are also making plans to receive investments that would allow them to expand and develop further. Just last week, Monex Group admitted to purchasing 100% of shares belonging to Coincheck. The deal was made for $34 million, and the goal is to fuse the knowledge of cryptocurrency and blockchain tech, with that of the financial industry. A recent hacking attack that targeted Coincheck also shows that the company needs additional security as well.
The attackers managed to get away with $530 million in NEM, and the company even admitted that their security needs an upgrade. Details about the attack also show that a single hacker managed to break into the so-called “hot wallet” belonging to Coincheck and transfer the coins to their own, external accounts.
Reports also say that the stolen tokens were transferred to 11 different wallet addresses. However, their owner or owners are not yet known. Because of this attack, FSA issued an order that says that the exchange needs to upgrade their security, as well as their management system. Several days after the attack, Coincheck issued refunds to their affected customers.