BitFlyer Holdings Inc. has recently announced that it has acquired FTX Japan and has made it a wholly-owned subsidiary. This acquisition is a strategic move for BitFlyer in expanding its market dominance. CEO Yuzo Kano said this move was a way of setting up the ground for crypto ETFs in Japan.
BitFlyer Acquires FTX Japan Amid Expansion
The recent FTX disaster has provided opportunities for strategic acquisitions to occur. This acquisition of FTX Japan by BitFlyer is to strengthen and develop its technology arm.
This acquisition is quite significant for BitFlyer, especially in its bid to diversify its products in the crypto market, such as the exchange-traded funds (ETFs) designed explicitly for the crypto market.
Kano was optimistic that the Crypto ETFs could grow. He said, “The United States received a significant amount of institutional money after listing Bitcoin ETFs.” Kano expects the same pattern to happen in Japan to boost investment.
This is because the emphasis is placed on ETFs, and it is anticipated that there will be a considerable increase in the value of core cryptocurrencies. For instance, by mid-February, Bitcoin ETFs constituted about 75% of the new investments in Bitcoin. Such ETFs not only increase investment but also increase the liquidity and stability in the crypto market.
Franklin Templeton, SBI Launch Crypto ETF Venture
In a new collaboration, Franklin Templeton will team up with SBI Holdings to launch a crypto ETF management company.
On July 26th, the parties signed a Memorandum of Understanding to launch a partnership that will provide a broad range of investment products, starting with Japan’s first spot crypto ETF. If it gets the green light from regulators, the venture is an excellent match for Japan’s current and future legal framework for digital assets.
The attempts to define the legal framework for the use of digital assets are gradually becoming more active. The web3 project team of Japan’s Liberal Democratic Party held its ‘DAO Rulemaking Hackathon’ to answer the questions and concerns of different actors. It has presented them to the Finance Minister, including the necessary recommendations for future legal acts.
Also, in June 2017, the National Tax Agency conducted a significant reform of taxation laws and excluded the issuers of crypto tokens from paying the 30% tax on unrealized gains.
The Japanese PM Fumio Kishida has supported this policy to raise the level of Japan’s blockchain and cryptocurrency industries within his vision of the new type of capitalism.
BitFlyer Aims to Lead in Crypto Services
FTX Japan, which operates under BitFlyer Holdings, could change the face of cryptocurrency in Japan. Thus, Kano’s vision of turning BitFlyer into a public service infrastructure for the industry must make the company a significant player in the market. BitFlyer will strengthen its position and develop new functionalities in the crypto industry sphere through the acquisition.
Crypto ETFs are expected to be launched in Japan in the coming months, just like in the US market. This will benefit institutional investors because they will gain stability and precise regulation from these ETFs. These investments are significant for developing and evolving the cryptocurrency market in Japan.
