Trading, bitFlyer, cryptocurrency, Japan, acquisition, bankruptcy, Chapter 11, financial authorities, cryptocurrency market, Japan Cryptocurrency Exchange Association, user safety, regulatory compliance, market position.
In a major development in the world of cryptocurrency, the Japanese arm of FTX Trading has been purchased by its domestic rival bitFlyer. This acquisition comes after FTX Trading filed for Chapter 11 bankruptcy in the United States last year.
FTX Trading, a well-known global cryptocurrency exchange, sought Chapter 11 bankruptcy protection in a U.S. court in November of the previous year, impacting around 130 group companies. This bankruptcy, considered one of the biggest in the industry, resulted in FTX Japan facing temporary suspension of asset withdrawals and partial operational shutdowns as ordered by Japanese financial authorities.
In the aftermath of this situation, FTX Japan began actively searching for a buyer. Reliable sources have revealed that bitFlyer’s parent company has emerged as the leading candidate to acquire FTX Japan. The ongoing acquisition process is expected to conclude with bitFlyer purchasing all shares of the Japanese subsidiary, with the deal estimated to be valued at several billion yen.
The acquisition comes at a time when the cryptocurrency market in Japan is experiencing significant growth. 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, a figure that has more than tripled in the past five years. Despite this growth, issues related to the safety and protection of users continue to be a concern.
The successful acquisition of FTX Japan by bitFlyer represents a crucial moment in the Japanese cryptocurrency landscape. As the industry continues to expand, the emphasis 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.