Just-In: BitFlyer Exchange Plans To Acquire FTX Japan

Japanese crypto exchange bitFlyer is gearing up to acquire FTX Japan, a local subsidiary of the collapsed exchange founded by Sam Bankman-Fried.
By Coingape Staff
Coinbase CLO Slams US SEC for Stopping FTX On Crypto Repayments

Highlights

  • BitFlyer is looking forward to closing the deal for FTX Japan acquisition.
  • The Japanese crypto exchange is expected to invest billions in JPY to acquire the FTX subsidiary.
  • FTX Japan might see heavy rebranding after the bitFlyer deal goes through.

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.

Advertisement
Advertisement

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.

Also Read: Breaking: Binance And Upbit Announce LayerZero (ZRO) Listing

Advertisement
Advertisement

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.

Also Read: Hashkey Launches Bitcoin & Ethereum Futures Trading After Regulatory Nod

Advertisement
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.