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

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

<p class="MsoNormal text-align-justify">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 <a href="https://lfb.mof.go.jp/kantou/kinyuu/pagekthp0270000022.html" rel="nofollow">announced</a> on Friday.</p><p class="MsoNormal">Finance Magnates
reported last month that the local Asian regulator <a href="https://www.financemagnates.com/cryptocurrency/the-bahamas-freeze-ftxcom-assets-japan-halts-local-operation/">ordered
the suspension of operations</a> of the local subsidiary
until December 9 (today). This followed <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">the sudden collapse</a> of the
Bahamas-headquartered cryptocurrency exchange over the alleged mishandling of
customer funds.</p><p class="MsoNormal">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.</p><p class="MsoNormal">Possible Withdrawal
Resumption</p><p class="MsoNormal">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.</p><p class="MsoNormal">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.</p><p class="MsoNormal">Check out this Finance Magnates London Summit 2022 session on what will shape fintech regulation in 2023</p><p class="MsoNormal">"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.</p><p class="MsoNormal">Meanwhile, in early
November,  the FTX Group <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/">filed
for bankruptcy protection</a> 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. </p><p class="MsoNormal">Furthermore, FTX is
undergoing civil and criminal investigations <a href="https://www.financemagnates.com/cryptocurrency/the-bahamas-will-not-share-information-on-ftx-probe-attorney-general/">in the
Bahamas</a> and is reportedly
undergoing a similar action in the United States. The assets of the
embattled cryptocurrency exchange have been ceased by <a href="https://www.financemagnates.com/cryptocurrency/the-bahamas-regulator-justifies-move-to-cease-local-ftx-clients-assets/">the
Securities Commission of the Bahamas</a>.
In addition, regulators in <a href="https://www.financemagnates.com/cryptocurrency/asic-suspends-ftxs-afs-license/">Australia</a> and <a href="https://www.financemagnates.com/cryptocurrency/ftxs-cysec-license-suspension-likely-to-start-wider-regulatory-audits/">Cyprus</a> have suspended the local licenses of the once-beloved crypto exchange.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.

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