Crypto exchange bitFlyer is preparing to acquire FTX Japan, a local subsidiary of the bankrupt Sam Bankman-Fried exchange.
BitFlyer, a leading Japanese cryptocurrency exchange, plans to purchase FTX Japan in a ground-breaking move.
The acquisition strategy for the local subsidiary of the globally recognized but now bankrupt FTX exchange was kept confidential until recently.
However, this acquisition is presently in the final stages of completion.
BitFlyer Acquires FTX Japan
As per sources with knowledge of the situation, bitFlyer’s parent company has expressed interest in acquiring FTX Japan.
The acquisition process is closely linked to the ongoing procedures in the US court that is overseeing the FTXÂ bankruptcy.
BitFlyer is likely to acquire all of the shares of FTX Japan.
Additionally, local media outlet NHK has reported that the Japanese crypto exchange will undertake responsibility for its business operations.
It is anticipated that the acquisition price will be in the range of several billion yen, which is indicative of the strategic significance of FTX Japan’s market position.
In November 2022, FTX, which was previously a prominent participant in the global crypto market, submitted a Chapter 11 bankruptcy petition in the United States.
Meanwhile, approximately 130 associated entities were included in the bankruptcy filing of the exchange founded by Sam Bankman-Fried.
Consequently, it became the most significant bankruptcy event in the crypto sector’s history.
In the aftermath, FTX Japan encountered operational constraints.
These included a temporary halt on asset withdrawals, which was owing to an order from Japanese financial authorities.
Stakeholders are intently monitoring the potential impact of this acquisition on the country’s broader crypto landscape as the procedures conclude.
Following the 2022 bankruptcy, FTX pursued a buyer for its Japanese subsidiary.
For this reason, the acquisition by bitFlyer is considered a crucial stage in the consolidation of the market.
Furthermore, bitFlyer is likely to extensively rebrand the FTX business to regain consumer trust that has been lost as a result of the ongoing legal troubles.
Japan Crypto Industry Boom
The latest acquisition comes at a time when Japan’s cryptocurrency market is rapidly expanding.
The Japan Cryptocurrency Exchange Association reported that the number of crypto accounts in Japan had surpassed 10 million by the end of April 2023.
This is an extraordinary increase, with a more than threefold increase in the last five years.
However, the safety and protection of users remain a concern, despite this growth.
Meanwhile, the Japanese Yen (JPY) is experiencing a surge in value, increasing the adoption of JPY crypto trading pairs.
