BitFlyer, a prominent crypto exchange in Japan, has agreed to acquire FTX Japan, the Japanese subsidiary of the now-defunct FTX exchange founded by Sam Bankman-Fried, who is currently convicted. FTX Japan was among the entities affected by FTX’s collapse in November 2022. Despite this, FTX Japan ensured that customer assets remained separate from FTX’s bankruptcy estate and completed reimbursements to customers by February 2023.

In a statement released on June 20, bitFlyer announced its intention to relaunch FTX Japan as a digital asset custodial firm focused on institutional investors. The company plans to offer services related to crypto asset spot ETFs, contingent upon the establishment of a legal framework in Japan. BitFlyer emphasized its commitment to maintaining licenses for crypto asset exchange services and Type 1 financial instruments businesses as regulatory developments unfold.

BitFlyer highlighted the growing interest among institutional investors in the crypto market, particularly following the approval of spot Bitcoin ETFs in the US. While Japan has not yet embraced ETFs in the same manner as the US, there is anticipation that regulatory attitudes could shift, potentially increasing demand for crypto asset custodial services.

Looking ahead, BitFlyer aims to cater to the specific needs of financial institutions and trust banks, aligning its services with regulatory advancements in Japan regarding crypto asset spot ETFs.