• FTX has postponed the potential sale process of its Japanese subsidiary to explore reopening.
• The exchange possesses two of the most coveted licenses in Japan, including the Crypto-Asset Exchange Service Provider and Type I Financial Instruments Business Operator under the Payment Services Act and the Financial Instruments and Exchange Act.
• Interest in acquiring FTX Japan is high due to its coveted licenses which generally take two or more years to obtain.
FTX Postpones Sales Process of Japanese Subsidiary
FTX has announced that it will postpone a potential sale process of its Japanese subsidiary and instead explore reopening it. The exchange’s management noted that while many investors had signified interest in acquiring FTX Japan, they were halting the sales plan to maximize value and continue operating efficiently and profitably.
Coveted Licenses Possessed by FTX Japan
FTX Japan is one of the few licensed operators in Japan, possessing two highly sought-after license types including a Crypto-Asset Exchange Service Provider and Type I Financial Instruments Business Operator under both the Payment Services Act and Financial Instruments and Exchange Act of Japan. These licenses generally take two or more years to obtain, making them even more attractive for investors when considering an acquisition.
High Interest for Acquiring FTX Japan
Due to these licenses possessed by FTX Japan, there is high interest amongst investors for acquiring it. This makes sense as these licenses are difficult to obtain on their own — taking at least two years — so having them already available is attractive for those looking into entering into this field within Japan.
Key Employee Incentive Plan Proposed
For its part, FTX wants a court to approve a Key Employee Incentive Plan (KEIP) for seven employees who are critical for its Japanese subsidiary’s operations going forward. This would serve as an incentive plan aimed at keeping key personnel with experience within the industry employed at this branch of FTX.
Conclusion
In conclusion, despite initially planning out a potential sale process for its Japanese subsidiary, bankrupt crypto exchange FTX has decided against it in favor of exploring reopening it instead due to its possession of coveted licenses which can be difficult to acquire on their own otherwise. Many investors have shown interest in acquiring this branch due to these very same licenses, whilst also proposing incentive plans such as KEIPs designed at retaining key personnel with relevant experience within this industry employed at this branch going forward.