Binance Set to Partner with Yahoo Japan Subsidiary to Launch New Crypto Trading Service
Global crypto exchange giant Binance is discussing partnership plans with Z Corporation and TaoTao towards launching a new crypto trading service in Japan. News of the partnership discussions come amid a flurry of expansion activities for Binance with new fiat trading pairs and token listings.
Crypto Exchange Giant Mulls Partnership with Z Corp and TaoTao
Binance announced the news of the proposed partnership via a statement on its website published on Thursday (January 16, 2020). According to the blog post, Binance has initiated negotiations with Z Corp and TaoTao towards establishing a trading platform in Japan.
Z Corp is a subsidiary of Yahoo Japan while TaoTao is a licensed cryptocurrency exchange platform and one of the portfolio companies of Z Corp. As previously reported by BTCManager, TaoTao began operations in May 2019.
The announcement also revealed that all the partners will work together with Japan’s Financial Service Agency (FSA) to ensure that the resultant trading service is in full compliance with all existing regulatory requirements.
Commenting on the news of the impending partnership deal, Binance chief Changpeng ‘CZ’ Zhao expressed delight at the development, tweeting:
“Many non-Japanese may not understand the significance of this. TaoTao & Z-Corp are subsidiaries of Yahoo Japan. YJ has been independent from Yahoo US for a long long time and is doing well. It is 48% owned by Softbank. Couldn’t ask for a better partner than TaoTao in Japan.”
Japan’s Tightening Crypto Laws
The Binance announcement did not contain any details about the exact nature of the partnership. However, the resultant trading service will have to abide by strict regulatory standards with the FSA continuing to exercise robust oversight on the crypto industry in Japan.
By the start of Q2 2020, the Payment Services Act which mandates higher compliance standards for crypto custodial platforms will come into effect. The FSA also recently lowered the leverage limit for crypto margin trading to 2x of customer deposits.
In an announcement published on Thursday, Binance alerted Japanese traders that access to its platform will soon be restricted. The exchange giant has already been forced to create a separate trading service for U.S. customers due to regulatory challenges in the country.
However, Binance continues to move forward with its expansion plans, enabling support for multiple fiat trading pairs and introducing new token listings. The platform has also enabled staking service for several altcoins like Stellar (XLM), Tezos (XTZ), and Tron (TRX).