Crypto exchange Binance has experienced a setback in its bid to return to the Japanese market – after the licensed, Yahoo Japan-backed crypto exchange Taotao said that it had “ended negotiations” with the major trading platform over a proposed return to the Japanese market.
The news comes almost 10 months after Binance claimed it was “preparing to launch trading services for users in Japan” by beginning a ”strategic partnership discussion” with Taotao operator Z Corporation and the holding company Z Holdings Corporation.
The Z Corporation operates Yahoo Japan, Japan’s leading search engine, and is backed by SoftBank, which owns a 48% stake in Yahoo Japan. Yahoo Japan owns a 40% stake in TaoTao, which was formerly known as BitARG.
In a tersely worded official release, TaoTao stated that the company "has been negotiating with Binance regarding a strategic alliance in the Japanese market, but has now ended these negotiations.”
The firm added,
“As announced on January 17, 2020, we have been discussing the issue of strategic partnership in the Japanese market, but we have decided to end negotiations.”
Binance has been looking for a way to return to the Japanese market since it announced that it would “phase out” its “services to customers residing in Japan” back in January this year following requests from the country’s regulatory Financial Services Agency (FSA).
The FSA requires all domestic and overseas crypto exchange firms to obtain an operating license from the regulator if they target customers residing in Japan. As reported, BitMEX left Japan this past spring, citing legislative changes.
Cryptonews.com has contacted Binance for comment and will update readers if the response is forthcoming.