Japan’s Financial Services Agency (FSA) has asked FTX Japan to suspend its business. By referring to the policies of FTX Trading Limited.
In an announcement on Nov. 10, the FSA saidIt has taken action against FTX Japan following the suspension of the withdrawal of FTX Trading Limited “without clearly explaining the reasons to investors,” the financial regulator said. Has issued a suspension and business improvement order in accordance with the Japan Payment Services Act. and the Financial Instruments and Exchanges Act.
“It is reported that FTX Trading Limited is facing credit uncertainty,” the FSA said. “We need to take all possible measures to prevent a situation where creditors and investors will be harmed by FTX affiliates.”
Under this directive, FTX Japan is required to suspend OTC derivative transactions and related parts. as well as new deposits from users from Nov. 10 to Dec. 9. The financial regulator also ordered the exchange to hold domestic assets during the same period. by reporting liabilities in the balance sheet appropriately
The FSA requires FTX Japan to submit a roadmap by Nov. 16, which includes methods intended to protect investors and provide transparency about the FTX situation.
“Until the completion of the business improvement plan Monthly progress and execution status will be reported in writing by the 10th of the following month.”
FTX Japan was launched in June by FTX following the acquisition of Liquid exchange.
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