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 information obtained, this acquisition is currently in the final stages of arrangement. Following this news, FTT, the native token of the stock exchange, started to move north!
BitFlyer buys FTX’s Japanese arm: FTT reacts to the development!
According to sources familiar with the matter, BitFlyer’s parent company has taken steps to acquire FTX Japan. The acquisition process is closely linked to the ongoing procedures in the US court addressing the bankruptcy of FTX. Accordingly, BitFlyer is expected to purchase all shares of FTX Japan. Additionally, according to local media NHK, the Japanese crypto exchange will assume control of its trading activities. 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 stagnant market. The token jumped from $1.59 during the day to over $1.70. FTT then continues to fly high, although it loses altitude slightly. The token is trading at $1.68 at the time of writing, up 6.4% on a daily basis.
The process and effects of BitFlyer’s acquisition of FTX Japan
cryptokoin.comAs you follow from , 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 United States. The exchange’s bankruptcy filing involved approximately 130 related companies. Hence, it emerged as the largest bankruptcy event in the history of the crypto industry. Following this, FTX Japan faced operational restrictions. These included a temporary halt to asset withdrawals due to an order from Japanese financial authorities.
Following the bankruptcy in 2022, the collapsed stock market 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 majorly rebrand its FTX subsidiary to gain consumer trust amid ongoing legal issues. As the procedures conclude, stakeholders are closely monitoring the impact this acquisition will have on the broader crypto landscape in the country.
Japan is experiencing a boom 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 10 million as of the end of April 2023. This is an increase of more than threefold in the last five years. Therefore, it is a quite remarkable increase. But despite this growth, issues related to the security and protection of users continue to be a concern.
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