Bitflyer Takes the Reins: Acquiring FTX Japan amid Bankruptcy Fallout

Bitflyer Takes the Reins: Acquiring FTX Japan amid Bankruptcy Fallout


Today (Thursday), it was disclosed that Bitflyer, a Japanese
cryptocurrency exchange, has acquired the Japanese operations of FTX, which had
previously filed for Chapter 11 bankruptcy protection in November 2022. FTX
Japan was among over 100 affiliated entities included in the bankruptcy
proceedings.

Asset Segregation Raises Recovery Hopes

In contrast to its parent company, FTX Japan reported having
more assets than liabilities, with approximately $134 million in user assets
segregated from FTX Trading. This distinction raised hopes for the potential
recovery of funds belonging to Japanese customers.

Bitcoin.com News reported over a year and five months ago
that FTX Japan customers would gradually be allowed to withdraw their assets.
Founded by Yuzo Kano, a former Goldman Sachs trader, Bitflyer is a
well-established cryptocurrency exchange in Japan, having received a license
from the Japanese Financial Services Agency in September 2017.

According to NHK, Bitflyer is set to acquire all shares of
FTX Japan, valuing the subsidiary in the range of several billion yen. As of
the latest update, Bitflyer has reported a 24-hour trade volume of
approximately $73.11 million, prominently driven by BTC/JPY transactions. It
currently ranks 22nd among global exchanges by trading volume as of Today.

Implementing TRUST Network

In preparation for Japan’s stricter cryptocurrency
regulations starting in June 2023, Bitflyer
implemented enhanced anti-money laundering rules
aligning with the FATF’s
Travel Rule, as reported by Finance
Magnates
.

These rules mandate sharing customer details for transactions
exceeding $3,000, including sender and recipient names, addresses, and account
information. Bitflyer now restricts deposits and transfers unless
counterparties are part of the Travel Rule Universal Solution Technology
(TRUST) network.

This network, backed by major exchanges like Coinbase and
BitGo, facilitates secure information transmission among virtual asset service
providers to comply with regulatory requirements effectively.

This article was written by Tareq Sikder at www.financemagnates.com.



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