Japanese Exchange Bitarg Denies Yahoo Acquisition Press ReportMarch 27, 2018
Yahoo Japan Buying a Stake in Bitarg, The Japanese Exchange Denies Report: Reliable media outlets have reported that Japanese crypto exchange, Bitarg, is selling off slightly less than half of its business to YJFX (Yahoo Japan). The reports have even conveyed that Yahoo Japan would then launch another crypto trading firm that will be set up on Bitrag’s system. The launching is set to happen by spring 2019.
A media outlet, Nikkei, published an article with the headline and subtitle reading: “Yahoo Japan plans to open crypto exchange; Initial steps to begin next month; a tie-up with Tokyo’s Bitarg Exchange.
The Nikkei post says that the two firms have already reported their business and capital tie-up plan to Japan’s top financial regular, the FSA (Financial Services Agency). The post goes on to explain that Yahoo Japan will “acquire up to 40 percent of Bitarg Exchange Tokyo next month and then proceed to launch a full-blown crypto exchange in the spring of 2019 or later. Nikkei also reports that Yahoo Japan will build the new exchange on Bitarg’s system.”
According to the post, Yahoo Japan is also planning to make a new investment in Bitarg, which will be registered with Japan’s Financial Services Authority in 2019. YJFX reportedly termed its moves as a “re-alignment in the crypto exchange business.”
A tormenting head scratcher
Bitrag has vigorously denied the press accounts, saying that it was only “considering various possibilities.” After the rumors of the done deal surfaced, Bitargo released a statement with a salutation, “Bitarg Exchange Company Ltd., Tokyo Representative Director Yoon Yuan.”
For its part, the Japanese exchange has called out the Nikkei report, in particular, saying it “reported that our firm accepted the investments from Weijay FX Corporation (which is a 100 percent subsidiary of Yahoo Japan). Nikkei also said that we are going to have a capital alliance, which is not what we recently announced. Following the environmental changes in the digital currency industry, our company is studying various possibilities, which include business and capital tie-ups with other firms so that we can further strengthen our system and management.”
Ms. Yoon Yuan further said that “we did nothing wrong. In the future, we are going to promptly respond when deciding what facts should be announced.”
Still, the Nikkei article is tantalizing, with various specifics including how Bitarg shares will be purchased. Apparently, the purchases will be done through YJFX, Tokyo, which a subsidiary fully owned by Yahoo Japan. YJFX, which currently provides foreign exchange transactions services, is expected to pay an estimated 2 billion yen (an equivalent of about $19 million) to acquire a 40 percent stake in the exchange. The stake will reportedly comprise of newly issued stock and outstanding shares.
The Nikkei post also details that more investments shall be made via yet another subsidiary early next year. Also, Yahoo Japan’s bigwigs are expected, as early as this year in April, to spend “about one year” at Bitarg to work on the configuration, customer management, corporate governance, and internal controls. This leaves observers outside scratching their heads.