- FTX Japan is planning to restart the exchange after reopening withdrawals for users.
- The resale plan may be delayed despite being watched by many investors.
- Adhering to the strict rules the Financial Services Agency set forth and following Japanese laws on separate asset management helped the Japanese branch escape the vortex of FTX.
FTX Japan is said to be postponing a resale plan to launch its crypto exchange after reopening withdrawals for customers.
Shareholders say FTX’s Japan branch plans to restart the Japanese exchange. Despite bidding interest, sales plans have been halted to maximize value. This seems possible because while most global companies associated with FTX were caught up in its debacle, only the Japanese branch was relatively unscathed and made it through a plan to reopen customer withdrawals. Besides reopening the exchange, FTX Japan may set up a custodian company that will handle all client funds separately from the exchange.
FTX Japan recently allowed customers to withdraw money and electronic assets starting from February 21 local time. On February 16, the exchange sent an email asking affected users to check their balances in preparation for the transfer of assets. CEO Melamed is confident of meeting the schedule and will announce the resumption of withdrawals after receiving sufficient data and related approvals for the balance transfer.
FTX Japan was originally a Japanese Liquid cryptocurrency exchange, and acquired by FTX in 2022. Following the bankruptcy of FTX, the Japanese branch said that Japanese customer assets will not be involved in bankruptcy proceedings in the United States “with consideration of deposit and custody sign these assets and property rights in accordance with Japanese law.”
According to documents published on December 26, 2022, FTX Japan manages an excess of customer deposits for all 14 cryptocurrencies it handles, including Bitcoin and ETH. In addition, the company operated a legal currency balance of about 6.3 billion yen, exceeding customer deposits by approximately 300 million yen.
FTX Japan adheres to strict rules set forth by the Financial Services Agency and is subject to Japanese legislation regarding separate asset management. The agency has managed to mitigate the impact of the FTX Global bankruptcy and take steps towards a smooth refund process for customers.
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