BitFlyer Holdings Acquires FTX Japan, Eyes Crypto ETF Launch

BitFlyer Holdings has acquired FTX Japan and integrated it as a wholly owned subsidiary.

In a Friday post on X, Yuzo Kano, CEO of BitFlyer Holdings, announced the completion of the acquisition.

“A company is needed that has the security technology to safely store the physical BTC that will serve as the ETF’s backing asset,” he wrote.

“Through our custody business, we aim to become a public service that serves as an industry infrastructure.”

FTX Japan’s acquisition follows the infamous collapse of its parent company, FTX, which was once the world’s second-largest crypto exchange by trading volume.

The collapse in November 2022 resulted in significant financial losses, with at least $8.9 billion in user funds unaccounted for.

BitFlyer to Launch Spot Crypto ETFs

The firm also revealed that it plans to expand its offerings, particularly in the realm of crypto-based exchange-traded funds (ETFs).

Kano said that the acquisition of FTX Japan is a critical step towards launching the first crypto ETFs in the Japanese market.

He expressed optimism about the timeline for these ETFs, drawing parallels with the United States, where institutional investment has surged following the introduction of Bitcoin ETFs.

“In the United States, the inflow of funds from institutional investors has accelerated since the listing of the Bitcoin ETF. I believe the day will come when ETFs will be listed in Japan,” he added.

米国ではビットコインETF上場をきっかけに、機関投資家からの資金流入が加速しています。

日本でもETFが上場する日が来ると信じています

そして、ETFの裏付け資産となる現物BTCを安全に保管できるセキュリティ技術を保有した会社が必要です。… https://t.co/0d1FZbNYwW

— 加納裕三@bitFlyer (@YuzoKano) July 26, 2024

Crypto ETFs have played a pivotal role in the appreciation of underlying assets.

For instance, by February 15, Bitcoin ETFs accounted for approximately 75% of new investments in Bitcoin, pushing its value past the $50,000 mark.

The spotlight on Japanese crypto ETFs intensified with Franklin Templeton’s recent partnership with SBI Holdings to establish a new crypto ETF management company.

The two firms formalized their collaboration with a Memorandum of Understanding (MoU) on July 26.

This joint venture aims to offer a diverse range of investment solutions, potentially including Japan’s first spot crypto ETF.

Franklin Templeton has revealed that the new venture would roll out products aligned with evolving digital asset regulations in Japan, pending regulatory approval.

Japan Conducts DAO Rulemaking Hackathon

In line with the efforts to develop a legal framework for limited liability company-type DAOs, the Liberal Democratic Party’s Digital Society Promotion Headquarters, and the web3 project team conducted a “DAO Rulemaking Hackathon” at the end of last year.

They received issues and requests from multiple companies, organizations, and investors, which were then submitted as recommendations to the Minister of Finance, per the report.

Last year, the country’s National Tax Agency also revealed that it has revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20.

At the time, Prime Minister Fumio Kishida said the move was aimed at boosting its blockchain and crypto sectors amid a push for “new capitalism.”

Crypto investors will still be liable to pay a maximum of 55% income tax on any earnings over JPY200,000 ($1,797) related to cryptocurrency, classified as “miscellaneous income.”