Japan’s Financial Services Agency has ordered the local branch of cryptocurrency exchange FTX to suspend operations, according to an official announcement on Thursday.
Japan Orders FTX Japan to Suspend All Operations and No New Registrations
The regulator wants FTX Japan to cease its crypto-asset exchange business and cease accepting new clients with immediate effect until December 9.
The order in question is Sam Bankman-Fried’s international cryptocurrency It followed a CoinDesk report examining the financials of the stock exchange, Alameda Research, its sister company.
The company announced that it started to have liquidity problems after these news. Although rival exchange Binance initially agreed to buy FTX, it later abandoned a possible acquisition.
In its decision, the Japan Financial Services Agency states that FTX Japan is suspending withdrawals for customers in the country without specifying a date for reinstatement, and continues to attract new customers.
A source said that FTX Japan has actually stopped withdrawals. Under these circumstances, the regulator stated that the company was uncertain about its financial health.
“All possible measures must be taken to prevent a situation where the assets of Japanese customers are leaked to a foreign subsidiary,” the resolution said.
The Japan Financial Services Agency suspension decision is accompanied by a “business development order” that requires FTX Japan to accurately identify users, strive to protect users’ assets, and “appropriately distribute information regarding the protection of their assets” to users.
FTX Japan is also required to submit a “written business improvement plan” to fix the issues mentioned by November 16.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!