Japan’s Financial Watchdog Extends FTX Japan Suspension

Japan’s Financial Watchdog Extends FTX Japan Suspension
  • In November, the FSA demanded that FTX Japan halt its activities.
  • The bankruptcy of FTX will not impact the assets held by FTX Japan.

On Wednesday, Japan’s Financial Services Agency (FSA) said that it intends to prolong the suspension order for FTX Japan, a cryptocurrency exchange. Because of delays in resuming withdrawals and returning client monies in Japan, the company has made the decision to implement the change. In November, the FSA demanded that FTX Japan halt its activities, including the addition of new clients, and begin preparing to resume withdrawals.

The Financial Services Agency of Japan intends to keep the FTX Japan suspension order in place past December 9. Nikkei reported on December 7 that the Japanese branch of FTX Trading was still unable to begin withdrawals and was taking longer than usual to repay client monies. It is also not apparent whether the company has any intentions to reimburse customers’ money.

Withdrawals Expected Soon

After crypto asset withdrawals were halted on November 10th, FSA Japan demanded that FTX Japan cease all activities. Due to misappropriating client cash with sibling business Alameda, cryptocurrency exchange FTX had liquidity concerns after a big selloff of FTX Token (FTT). As a result, FTX put an indefinite hold on withdrawals.

The bankruptcy of FTX will not impact the assets held by FTX Japan, thus the company has declared it would be restoring client monies.

An FTX Japan official has previously said that the company is working on a new withdrawal method that would allow clients to make withdrawals again before the end of the year. As of the 10th of November, the Japanese branch apparently has deposits of roughly 19.6 billion yen ($138 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.