In a major development in the cryptocurrency sector, bitFlyer, a domestic competitor, has acquired the Japanese subsidiary of FTX Trading. This acquisition comes after FTX Trading filed for Chapter 11 bankruptcy in the United States last year.
FTX Trading, a prominent global cryptocurrency exchange, sought bankruptcy protection in a U.S. court in November, affecting about 130 group companies. This bankruptcy, one of the largest in the industry, led to FTX Japan facing temporary suspension of asset withdrawals and partial operational shutdowns by Japanese financial authorities.
Following the fallout, FTX Japan actively sought a buyer, and reliable sources indicate that bitFlyer’s parent company is now the front runner in acquiring FTX Japan. The acquisition process is currently underway and is expected to result in bitFlyer purchasing all shares of the Japanese subsidiary. The deal is estimated to be valued at several billion yen.
The acquisition comes at a time of significant growth in the cryptocurrency market in Japan. According to the Japan Cryptocurrency Exchange Association, the number of cryptocurrency accounts in the country surpassed 10 million by the end of April this year, more than tripled in the past five years. Despite this growth, concerns about the safety and protection of users persist.
The successful acquisition of FTX Japan by bitFlyer marks a turning point in the Japanese cryptocurrency landscape. As the industry continues to expand, a focus on user safety and regulatory compliance will remain crucial. BitFlyer’s acquisition is expected to strengthen its market position and provide a stable platform for former FTX Japan users.
