BitFlyer, a major Japanese cryptocurrency exchange, is preparing to acquire FTX Japan. The acquisition plan for the local subsidiary of the world-famous bankrupt exchange FTX has been secret until now. However, according to the information obtained, this acquisition is currently in the final stage of arrangement. Following this news, the exchange’s native token FTT is heading north!
BitFlyer acquires FTX’s Japan arm: FTT reacts to the development!
BitFlyer’s parent company has stepped in to acquire FTX Japan, according to sources close to the matter. The acquisition process is closely linked to the ongoing procedures in the US court handling FTX’s bankruptcy. Accordingly, BitFlyer is expected to acquire all the shares of FTX Japan. Moreover, according to local media NHK, the Japanese crypto exchange will assume control of its business operations. The purchase price is expected to be in the range of several billion yen, reflecting the strategic value of FTX Japan’s position in the market.
Following this development, FTX’s native token FTT started to rise in the sluggish market. The token jumped from its intraday level of $1.59 to over $1.70. FTT then lost some altitude, but continues to fly high. At the time of writing, the token is trading at $1.68, up 6.4% on the day.
The process and implications of BitFlyer’s acquisition of FTX Japan
As you have been following on Kriptokoin.com, FTX was once a leading player in the global crypto market. However, in November 2022, it filed for Chapter 11 bankruptcy protection in the US. Its founder and CEO Sam Bankman-Fried was tried and convicted in the US. The exchange’s bankruptcy filing included about 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 suspension of asset withdrawals due to an order from the Japanese financial authorities.
Following the bankruptcy in 2022, the collapsed exchange sought a buyer for its Japanese subsidiary. Therefore, the acquisition of BitFlyer is seen as a critical step towards consolidating the market. Moreover, BitFlyer is expected to drastically rebrand its FTX subsidiary to gain consumer confidence amid ongoing legal issues. As the procedures wind down, stakeholders are closely watching the impact this acquisition will have on the broader crypto landscape in the country.
Japan is booming in the crypto industry!
This 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 exceeded 2023 million by the end of April 10. This is more than a three-fold increase in the last five years. Therefore, it is quite a remarkable increase. But despite this growth, issues related to the security and protection of users remain a concern.
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