The Regulator Ordered FTX Japan To Suspend Operations After The Withdrawal Halt

The Financial Services Agency has ordered FTX Japan – SBF’s exchange’s local arm to halt operations until December and develop a “business improvement plan.”

According to an official announcement on November 10, Japan’s Financial Services Agency has ordered crypto exchange FTX’s local unit to cease operations.

The regulator wants this exchange to halt its crypto asset exchange business and stop accepting new customers until December 9, effective immediately.

The order comes as Sam‘s cryptocurrency exchange FTX continues its downward spiral following a liquidity crisis caused by a CoinDesk article examining the finances of Alameda Research, its sister company. Although rival exchange Binance initially agreed to buy FTX, it has since backed out of the deal.

The FSA cited in its order the fact that FTX Japan halted withdrawals for customers in the country without specifying a date for reinstatement, despite the fact that it continues to enlist new customers. According to a source, the platform has indeed ceased withdrawals. Given the circumstances, the regulator expressed concern about FTX Japan’s health.

“It is essential to take all possible precautions to avoid a situation in which (Japanese customers’ assets) are leaked to a (foreign) affiliated company,” the order stated.

The FSA’s suspension order is accompanied by a “business improvement order,” which requires this SBF’s local platform to accurately identify users, strive to protect users’ assets, and “appropriately disseminate information to users regarding asset protection.”

A “written business improvement plan” was asked to summit for resolving the aforementioned issues by November 16. According to a source familiar with the situation, this could be a first for Japanese regulators. FTX Japan and the FSA did not respond immediately to requests for comment.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Chubbi

CoinCu News