Japan’s top financial regulator, the Financial Services Agency (FSA), has issued a business suspension order for FTX Japan, a subsidiary of FTX.com in Japan. The financial watchdog has also asked the crypto exchange to submit a business improvement plan by November 16.
Japanese Regulators Take Action Against Japan’s FTX
Japan’s Financial Services Agency (FSA) announced Thursday that the Kanto Local Financial Bureau has taken action against FTX Japan, the Japanese subsidiary of crypto exchange FTX.com. attached to Sam Bankman-Fried.
Three orders have been issued against the crypto exchange: an order to suspend business, an order to hold assets in the country, and an order to improve business operations. FTX Japan had to suspend operations from November 10 to December 9, and the exchange was unable to accept new assets from customers during that time. The regulator has also asked the company to submit a business improvement plan by November 16.
The FSA announcement explains that FTX Japan’s decision to suspend customer withdrawals without specifying a resume schedule, while accepting investor assets and crypto transactions continues. , which means that the exchange does not have the necessary structure to provide cryptocurrency exchange services in a manner deemed appropriate by Japanese standards.
FTX Japan cited the parent company’s policy on suspending withdrawals. “In accordance with headquarters policy, we have temporarily suspended crypto asset withdrawals and fiat withdrawals,” the exchange said on Wednesday.
In response to the business suspension, FTX Japan informed its users on Thursday that during the suspension, services related to opening new accounts, spot trading, fiat deposits, transfers, and more incoming cryptocurrencies and derivatives trading will be halted.
Regarding the order of business improvement, the trading floor informed customers: “All employees, including the management team, will strictly follow this command to improve business, develop an improvement plan. and do it consistently. In addition, we will make efforts throughout the company to fully comply with relevant laws and regulations and further strengthen our management system in an effort to regain the trust of our customers. On Friday, FTX Japan announced that some withdrawals in Japanese Yen have resumed.
The Japanese regulator took action following the significant collapse of the Bankman-Fried crypto empire. He told FTX.com investors that his company needed an urgent cash injection or might have to file for bankruptcy.
The Bahamas Securities Commission has frozen the assets of the Bahamian subsidiary of FTX.com and US authorities are investigating the exchange for alleged mishandling of customer funds.