On November 11, Shunichi Suzuki, Minister of State for Special Duties (Minister of Finance) in the Cabinet Office of Japan, referred to the local cryptocurrency FTX Japan, which has taken measures to suspend the withdrawal of client funds.
Japan Concerned About Exporting FTX Client Assets
He expressed concern over the risk of client assets flowing out of the country.
In Japan, crypto-asset exchanges are overseen by the Financial Services Agency, which, as an external department of the Cabinet Office, falls under the jurisdiction of the Prime Minister and the Minister of State for Special Duties in the Cabinet Office (Minister of Finance), among others.
On September 9, FTX Japan, cryptocurrency announced that it has temporarily suspended its withdrawal and cashback services.
The company took administrative action from the Financial Services Authority on June 10, amid concerns among investors about the embezzlement of client assets in connection with the liquidity crisis at its overseas parent company, FTX. On November 11, FTX Japan resumed Japanese Yen withdrawals.
At a press conference after the Cabinet meeting on November 11, Finance Minister Suzuki emphasized that “all possible measures should be taken to ensure that the interests of users are not harmed due to the transfer of assets to subsidiaries outside of Japan”.
“We will continue to monitor the situation closely to ensure that user-related measures are taken appropriately.” said.
On November 10, the Financial Services Agency (Kanto Local Finance Bureau) issued a business stop order ordering FTX Japan, a Japanese subsidiary, to suspend its activities related to exchange business and asset acceptance from users for the period November 10 – December 9, 2010.
As the reasons for the administrative measure, the Kanto Local Finance Bureau stated that the company “failed to provide users with a clear explanation of the reasons for the suspension, did not specify a resumption schedule due to parent company FTX’s policy, and continues to offer trading services such as buying, buying and selling cryptographic assets.” had stated.
*Not investment advice.
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