- 26th March 2019
- Posted by: emy
- Category: Media
Taotao (formerly BitARG) will start trading a limited range of cryptocurrencies according to a report from Cointelegraph Japan. The exchange has already received regulatory approval.
A subsidiary of Yahoo! Japan owns 40% of the exchange that will initially trade BTC and Eth with margin positions available in LTC, BCH and XRP. Interested traders can now sign up for an account and participate in a promotional giveaway scheme.
Japan introduced new regulations for cryptocurrency margin trading on 18th March this year. The Cabinet of Japan, the executive branch of the country’s government, approved draft amendments to Japan’s financial instruments and payment services laws, limiting leverage in cryptocurrency margin trading at two to four times the initial deposit. Margin trading is the use of borrowed funds from a broker to trade a financial asset, thus forming a collateral for the loan. The new rules — which are reportedly to come into force in April 2020 — will require cryptocurrency exchange operators to register within 18 months of that date. This will enable the Financial Services Agency (FSA) to introduce relevant measures with regard to unregistered cryptocurrency “quasi-operators.”
The plan for the Taotao exchange was first mooted in March 2018 when Yahoo! Japan announced it would acquire a major stake in the exchange through its subsidiary, YJFX. Cointelegraph says, “At the time, sources suggested the purchase had cost the company around 2 billion yen (then $19 million).”
It is a significant move, because this event marks the first time that Yahoo! has got involved with cryptocurrencies, even if it is through a subsidiary. As Cointelegraph reported, Japan has sought to impose strict monitoring on entities wishing to launch exchanges, after several infamous hacks placed an international spotlight on the industry. Coincheck was one of the biggest victims of crypto theft, nvolving tokens worth over half a billion dollars in January 2018. However, it has managed to return to the market following a buyout.