Monex Group Inc., a Japanese online broker, has reportedly expressed interest in purchasing FTX Japan, which is in the process of filing for bankruptcy.
The Nikkei Asian Review says that Monex wants to buy the troubled crypto exchange’s Japan-based operations. Up to 10 billion yen, or roughly $90 million, could be involved in the transaction.
After a bank run and a drop in cryptocurrency prices, FTX Japan declared bankruptcy in November 2020. On December 11, 2020, the exchange stopped doing business and is now going through bankruptcy proceedings.
Monex Plans To Go Ahead
Monex, a Tokyo Stock Exchange-listed company, is said to have discussed the potential acquisition with FTX Japan’s creditors. As long as FTX Japan’s finances remain sound, the company has stated that it is open to the possibility of purchasing the company.
Monex’s move comes at a time when the Japanese cryptocurrency industry is under regulatory scrutiny. The Financial Services Agency (FSA), the country’s financial regulator, has proposed tighter regulations for crypto exchanges following FTX Japan’s bankruptcy.
The proposed guidelines would require crypto trades to keep up with capital stores of somewhere around 10 billion yen (generally $90 million). Exchanges would also be required to ensure that customers’ funds are kept in separate accounts under the proposed regulations.
Cryptocurrency exchanges have voiced their opposition to the proposed regulations, arguing that they are too stringent. However, the FSA is likely to implement the regulations and impose them on crypto exchanges soon.
The fact that Monex is said to be interested in FTX Japan indicates that investors still find the Japanese crypto industry to be appealing despite increased regulatory scrutiny. If the deal goes through, it could indicate that the sector is prepared to move forward and become more secure for investors.
