Cryptocurrency exchange FTX Trading plans to postpone the sale of its Japanese subsidiary, FTX Japan, and has conveyed this intention to the Japanese Financial Services Agency through FTX Japan.
FTX's decision to suspend the sale of FTX Japan is not aimed at delaying the sale process of the Japanese subsidiary itself. A senior executive from FTX Group stated, “They aim to increase the sale price by selling the entire group instead of individual regional subsidiaries.”
In addition, the customer asset repayment process initiated by FTX Japan in February has been progressing smoothly. Currently, FTX Japan has returned 80% of Japanese yen and other fiat currencies, as well as virtual currencies, to its customers. If the trading system previously used by FTX Japan's predecessor, QUOINE, operates smoothly, the Japanese Financial Services Agency may allow the company to resume operations by the end of the year (Nikkei News).
According to previous reports in April, FTX confirmed its plans to relaunch its Japanese exchange. Although there was investor interest in acquiring the company, the sale plan was temporarily halted in order to maximize value. FTX Japan also proposed a core employee incentive program called “License and Restart Award.”
The disclosure documents indicate that “the potential sale process of FTX Japan has been postponed to allow the exchange to resume operations with regulatory approval, which would maximize the value of the transaction. As of the signing of this agreement, a significant number of investors have expressed interest in acquiring the company. At the same time, the debtor is considering potential restructuring, which would require the company to continue operating efficiently and profitably. A key to successful restructuring or transaction is for the company to maintain its licenses as a provider of cryptocurrency exchange services and a first-class financial instrument operator, a combination that is rare among operators in Japan and sets the company apart from many competitors. Therefore, as part of the restructuring, these licenses are crucial for the company's continued operations, and likewise, investor interest in the transaction largely depends on the company maintaining its dual license status.”