Japanese Regulator Orders FTX Japan To Cease Operations

Japanese Regulator Orders FTX Japan To Cease Operations
  • As per the order, FTX Japan will not resume operations until December 9, 2022.
  • The authority has expressed uncertainty over FTX Japan’s well-being.

Japan’s Financial Services Agency (FSA) has reportedly ordered the local branch of FTX to shut down, according to a statement issued on Thursday. The decision states that effective immediately, FTX Japan is to discontinue all operations as a cryptocurrency exchange. Including the acceptance of new customers, and will not resume operations until December 9, 2022.

The FSA notes in its judgment that FTX Japan halted processing client withdrawals without providing an estimated period for their reinstatement. And without suspending new registrations on the site. The authority has expressed uncertainty over FTX Japan’s well-being in light of the present circumstances.

Inevitable Decline Without Funding

FTX Japan must also submit a “written business improvement plan” to the authority by November 16, 2022. In order to resolve the previously identified problems.

The decision was taken because FTX, SBF’s cryptocurrency exchange, is experiencing a severe liquidity issue and is rapidly approaching an inevitable decline without funding. Binance, a competitor exchange, had agreed to purchase the financially troubled exchange at one point but has since backed out of the arrangement.

The native token of the FTX exchange, FTT, has decreased by over 3% in the last hour and by 30% in the previous 24 hours as a result of the news. It has a current market value of $3.1 at the time of this writing.

Reportedly all withdrawals and deposits on the FTX exchange were halted. But On-chain data provider Nansen recently reported that FTX has resumed withdrawals. According to the records, one customer withdrew ETH valued at $2.6 million while another customer withdrew USDC valued at $1.3 million.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.