bitFlyer, one of Japan’s biggest crypto exchanges, will soon be acquired by the ACA Group, which is a Japan-based private equity fund in Singapore. ACA Group has come to an agreement with a team of bitFlyer Holdings to purchase a majority stake, the value of which is expected to be $370 million. Eventually, after the corporate value of bitFlyer increases, ACA will sell the company.
bitFlyer is based in Tokyo and in a statement has said that at the moment nothing has been concretely decided. bitFlyer was founded in 2014 and has JPY 573.2 billion as assets under custody as of 2021 March.
In 2017, Japan had legally defined cryptocurrencies, after which there was a bubble that existed in digital assets while operators of crypto raked in big sums of money as profit. However, in 2018, Coincheck, based in Tokyo fell victim to undoubtedly one of the biggest cryptocurrency hacks in history and then came under the control of Monex Group. Ever since, many operators are exiting the business of crypto exchange because of inflated costs for legal compliance and other grim factors that have happened due to regulations being very tight regarding cryptocurrencies.
Both bitFlyer and Coincheck have 1.53 million accounts with company verified identities, and a group of bitFlyer shareholders which included venture capital investors have led the negotiations for sale. The Stock exchange of Tokyo does not accept IPOs for exchanges of cryptocurrencies, and because overseas listings would take time, the group collectively decided to sell its shares to an investment fund so that their investments could be recouped faster.