Just-In: BitFlyer Exchange Plans To Acquire FTX Japan

In a groundbreaking development, bitFlyer, a major Japanese cryptocurrency exchange, is set to acquire FTX Japan. The acquisition plan for the local subsidiary of the globally renowned but now bankrupt FTX exchange was under wraps till now. However, this acquisition is currently in the final stages of arrangement.

FTX Japan Acquisition By BitFlyer

According to sources close to the matter, bitFlyer’s parent company has stepped forward to acquire FTX Japan. The acquisition process is closely tied to the ongoing procedures in the US court handling FTX bankruptcy.

BitFlyer is expected to purchase all shares of FTX Japan. Furthermore the Japanese crypto exchange will assume control of its business operations, according to local media NHK. The acquisition price is anticipated to be in the range of several billion yen, reflecting the strategic value of FTX Japan’s market position.

FTX, once a leading player in the global crypto market, filed for Chapter 11 bankruptcy protection in the United States in November 2022. The bankruptcy filing of the exchange founded by Sam Bankman-Fried included approximately 130 associated companies. Hence, it emerged as the largest bankruptcy event in the history of the crypto sector.

Following this, FTX Japan faced operational restrictions. These included a temporary halt on asset withdrawals, due to an order from Japanese financial authorities. In the aftermath of the 2022 bankruptcy, the collapsed exchange sought a buyer for its Japanese subsidiary. Hence, the acquisition by bitFlyer is seen as a critical step towards consolidating the market.

Moreover, bitFlyer is expected to heavily rebrand the FTX subsidiary to earn consumer trust amid the ongoing legal trouble. As the procedures conclude, stakeholders are closely watching the impact this acquisition will have on the broader crypto landscape in the country.

In the aftermath of the 2022 bankruptcy, FTX sought a buyer for its Japanese subsidiary. Hence, the acquisition by bitFlyer is seen as a critical step towards consolidating the market. Moreover, bitFlyer is expected to heavily rebrand the FTX subsidiary to earn consumer trust lost due to the ongoing legal trouble.

Japan Crypto Industry Boom

The latest acquisition comes at a time when the crypto market in Japan is experiencing significant growth. According to data from the Japan Cryptocurrency Exchange Association, the number of crypto accounts in Japan surpassed 10 million by the end of April 2023.

This is a remarkable increase, more than tripling over the past five years. However, despite this growth, issues related to the safety and protection of users continue to be a concern. Meanwhile, the Japanese Yen (JPY) is gaining strength, boosting adoption of JPY crypto trading pairs.

The post Just-In: BitFlyer Exchange Plans To Acquire FTX Japan appeared first on CoinGape.