Binance, which is considered the most prominent cryptocurrency exchange, recently faced a below in its attempt to make a comeback in the Japanese market. The reason behind the setback was the licensed cryptocurrency exchange, which is known as Taotao.
The Yahoo-backed exchange Taotao recently announced that they had ended their negotiations with Binance. The negotiations were about Binance’s proposal for returning to the Japanese crypto-market.
It was back in January 2020 when Binance made the announcement that they were setting things up to start their trading platform for the Japanese users. It was announced that Binance was in talks with the operators at Taotao to commence their development program for the Japanese exchange platform.
The operators representing Taotao in these talks were Z Holdings Corporation and Z Corporation.
The Z Corporation is known for being the operator for Yahoo in the Japanese region, which is the most utilized and popular search engine in Japan. The main body that owns 48% stake in Yahoo Japan and backs Z Corporation is SoftBank. Before changing its name, TaoTao was known as BitARG.
TaoTao had also authenticated the announcement made by Binance. They agreed that they were getting ready to start their talks with Finance in regards to setting up an Alliance. TaoTao added that the Alliance was in order to create a strategic plan around the development of a crypto-exchange platform.
This platform was to help the Japanese citizens in making transactions and receiving payments via the Binance platform.
The representatives of the Z Corporation added that they were going to make full use of the Yahoo Japan platform in order to target and attracted a large number of Japanese internet users. Doing so would have brought in more user following and demand to the Binance trading platform.
The reason behind Binance setting up an alliance with TaoTao was to obtain the license from their operator (Z Corporation) in order to operate in Japan. The licensing requirement was made mandatory by the Financial Services Agency (FSA).
As per FSA, every foreign as well as domestic crypto-exchange is required to have an operating license issued by a regulator if they wish to target their services towards Japanese users.