Japan's largest financial group, SBI Holdings, has announced the acquisition of TaoTao Exchange, a cryptocurrency platform formerly operated by Yahoo Japan (now rebranded as Z Holdings). This strategic move grants SBI control over two licensed crypto exchanges in Japan. Notably, the acquisition follows the abrupt collapse of TaoTao’s partnership negotiations with Binance just two days prior.
Acquisition Details
- Full Ownership: SBI Liquidity Markets (a subsidiary of SBI Holdings) now holds 100% of TaoTao’s shares, purchased from Z Holdings. The financial terms remain undisclosed.
- Timeline: The deal was formalized on October 7, 2020, shortly after TaoTao ended talks with Binance on October 5.
- Historical Context: TaoTao launched its crypto services in May 2019, with Yahoo Japan’s YJFX initially owning 40% of the exchange.
SBI’s Crypto Expansion
With this acquisition, SBI Holdings strengthens its foothold in Japan’s crypto market:
- SBI VC Trade: The group’s existing crypto venture arm, operational since July 2019, offers trading services under SBI Securities.
- TaoTao Integration: SBI aims to leverage TaoTao’s user base and technical expertise to enhance its crypto offerings.
"We will combine SBI’s financial expertise with TaoTao’s crypto-asset capabilities to deliver superior services."
— SBI Holdings Official Statement
Binance Negotiations Fall Through
TaoTao had engaged in nine months of negotiations with Binance to establish a joint crypto exchange in Japan. However, the abrupt termination of talks dashed Binance’s hopes for a 2020 entry into the Japanese market.
Japan’s Crypto Exchange Landscape
- 26 Licensed Platforms: The country boasts a diverse ecosystem of regulated crypto exchanges.
- Regulatory Hurdles: Strict compliance requirements have historically limited foreign players like Binance.
FAQs
1. Why did SBI acquire TaoTao?
SBI seeks to diversify its crypto services and capitalize on TaoTao’s existing infrastructure and client base.
2. What does this mean for Binance?
Binance’s plans to enter Japan via TaoTao are halted, forcing the exchange to explore alternative strategies.
3. How does this impact Japan’s crypto market?
The consolidation under SBI may increase competition among domestic exchanges while maintaining rigorous regulatory standards.