Japan Crypto Exchange bitFlyer To Be Sold To Singapore-based Investment Fund

According to Nikkei, the operator of one of Japan’s top crypto exchanges – bitFlyer will be acquired by ACA Group, a Japanese private equity group based in Singapore.

The fund has reached an agreement with a group of bitFlyer Holdings shareholders to purchase a controlling ownership in the company, which is valued at much to JPY 45 billion (USD 370 million).

After boosting its corporate worth, ACA is likely to sell bitFlyer

“At the moment, nothing has been decided,” bitFlyer, based in Tokyo, told Nikkei. As of March 2021, the company, which was created in 2014, had JPY 573.2 billion in assets under custody.

Following Japan’s legalization of cryptocurrencies in 2017, a digital asset bubble erupted, with operators reaping significant profits. However, in January 2018, Tokyo-based Coincheck was the victim of one of the largest cryptocurrency hacks in history, and was taken over by Monex Group, a significant internet-based securities firm. Since then, some operators have left the crypto exchange market due to rising legal compliance expenses and other issues brought on by tighter restrictions. This pattern is expected to continue.

Coincheck has 1.53 million verified accounts, while bitFlyer is estimated to have almost the same number.

The sale was led by a group of bitFlyer Holdings stockholders, including venture capital investors. Initial public offerings for cryptocurrency exchanges are not accepted by the Tokyo Stock Exchange. Because an overseas listing would take time, the group opted to sell shares to an investment fund in order to immediately return their investment.

Yuzo Kano, the founder and CEO of bitFlyer, owns about 40% of the company and has been negotiating a sale on his own. Huobi Group, which operates crypto exchanges across Asia, and Mercari, Japan’s version of eBay, have failed to reach an agreement to sell the company. Kano is said to have insisted on the exchange rate being fixed at slightly over JPY 100 billion.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News