Japan Extends FTX Suspension to March 2023, Orders Retention of Assets


Japan’s Kanto Local
Finance Bureau has extended the suspension of FTX Japan, the local subsidiary of
the beleaguered cryptocurrency exchange, FTX, to March 9, 2023, the Japanese
Financial Services Agency announced on Friday.

Finance Magnates
reported last month that the local Asian regulator ordered
the suspension of operations of the local subsidiary
until December 9 (today). This followed the sudden collapse of the
Bahamas-headquartered cryptocurrency exchange over the alleged mishandling of
customer funds.

However, the domestic
watchdog noted that it could reverse the suspension if a system to properly
conduct the overall operations of the subsidiary’s digital asset exchange
business is developed and subjected to its confirmation.

Possible Withdrawal
Resumption

Meanwhile, the Kanto
Local Finance Bureau in November tasked FTX Japan with submitting a
business improvement plan by November 16. In the new administrative action, the
regulator noted that the order remains in place.

Furthermore, the
regulator said it was working towards resuming withdrawal services on FTX Japan
but cannot give a specific date when the service could be reopened. The market
supervisor added that it will continue to suspend new transactions for users.

Check out this Finance Magnates London Summit 2022 session on what will shape fintech regulation in 2023

“At the same time, it is
necessary to take all possible measures to ensure that the Company’s [FTX Japan
Co. Limited) assets do not flow out to overseas affiliates, etc. and that the
interests of users are not harmed,” the financial markets supervisor further explained.

Meanwhile, in early
November, the FTX Group filed
for bankruptcy protection in the United States
and included FTX.com, the exchange’s US subsidiary, FTX.US, Hong
Kong-based subsidiary Alameda Research Limited, and “approximately 130
additional affiliated companies.” FTX Japan is one of these affiliates.

Furthermore, FTX is
undergoing civil and criminal investigations in the
Bahamas and is reportedly
undergoing a similar action in the United States. The assets of the
embattled cryptocurrency exchange have been ceased by the
Securities Commission of the Bahamas.
In addition, regulators in Australia and Cyprus have suspended the local licenses of the once-beloved crypto exchange.

Japan’s Kanto Local
Finance Bureau has extended the suspension of FTX Japan, the local subsidiary of
the beleaguered cryptocurrency exchange, FTX, to March 9, 2023, the Japanese
Financial Services Agency announced on Friday.

Finance Magnates
reported last month that the local Asian regulator ordered
the suspension of operations of the local subsidiary
until December 9 (today). This followed the sudden collapse of the
Bahamas-headquartered cryptocurrency exchange over the alleged mishandling of
customer funds.

However, the domestic
watchdog noted that it could reverse the suspension if a system to properly
conduct the overall operations of the subsidiary’s digital asset exchange
business is developed and subjected to its confirmation.

Possible Withdrawal
Resumption

Meanwhile, the Kanto
Local Finance Bureau in November tasked FTX Japan with submitting a
business improvement plan by November 16. In the new administrative action, the
regulator noted that the order remains in place.

Furthermore, the
regulator said it was working towards resuming withdrawal services on FTX Japan
but cannot give a specific date when the service could be reopened. The market
supervisor added that it will continue to suspend new transactions for users.

Check out this Finance Magnates London Summit 2022 session on what will shape fintech regulation in 2023

“At the same time, it is
necessary to take all possible measures to ensure that the Company’s [FTX Japan
Co. Limited) assets do not flow out to overseas affiliates, etc. and that the
interests of users are not harmed,” the financial markets supervisor further explained.

Meanwhile, in early
November, the FTX Group filed
for bankruptcy protection in the United States
and included FTX.com, the exchange’s US subsidiary, FTX.US, Hong
Kong-based subsidiary Alameda Research Limited, and “approximately 130
additional affiliated companies.” FTX Japan is one of these affiliates.

Furthermore, FTX is
undergoing civil and criminal investigations in the
Bahamas and is reportedly
undergoing a similar action in the United States. The assets of the
embattled cryptocurrency exchange have been ceased by the
Securities Commission of the Bahamas.
In addition, regulators in Australia and Cyprus have suspended the local licenses of the once-beloved crypto exchange.



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