Japan’s Financial Services Agency requested the exchange suspend business orders on Nov. 10, FTX Japan plans to resume withdrawals this year.
By the end of 2022, FTX Japan, a subsidiary of the cryptocurrency exchange, reportedly plans to start accepting withdrawals again. NHK, a Japanese news organization, reported on November 21 that the crypto exchange has been getting ready to resume withdrawals.
Prior to FTX Group filing for bankruptcy in the U.S for more than 130 associated companies, including FTX Japan Holdings, FTX Japan, and FTX Japan Services, Japan’s Financial Services Agency, or FSA, requested the exchange suspend business orders on Nov. 10.
In response to reports that FTX Japan’s parent company was “facing credit uncertainties,” the FSA declared on November 11 that it had taken administrative actions against the crypto exchange.
The orders mandated that FTX Japan suspend all over-the-counter derivatives transactions, associated margins, and new user deposits from November 10 to December 9 unless the financial regulator gave other instructions.
By Nov. 16, FTX Japan was also required to submit a plan outlining how it intended to safeguard investors and be transparent about the current situation. According to NHK, who cited an unnamed executive at the Japanese exchange, the crypto exchange had approximately 19.6 billion yen in cash as of Nov. 10 when it ceased operations, or more than $138 million.
In addition, it was rumored that the Japan-based business was up for sale as FTX Trading was going bankrupt in the U.S Similar measures have been taken by other FTX subsidiaries in response to ongoing litigation brought against the business.
On Nov. 20, Liquid, a Japanese-based subsidiary of FTX Group, declared that it had suspended “all forms of trading” as a result of the company filing for Chapter 11 bankruptcy. LedgerX, owned by FTX US under the name West Realm Shire Services, might not be included in the bankruptcy filing of FTX as a debtor.
