Japanese regulator announces administrative action against FTX
Japanese financial regulator today issued a business improvement order as to FTX Japan Co., Ltd. This happens as the possible deal between the crypto exchange, which is experiencing severe liquidity issues, and Binance fell through.
The regulator issued a business suspension order valid between November 10, 2022 and December 9, 2022. FTX’s operations related to the crypto asset exchange business and new use for such operations will be suspended. Technically, this means the exchange will not be accepting new funds.
Further, under the business improvement order, FTX will have to conduct accurate identification of users and accurate identification of assets entrusted by users. It will have to protect assets entrusted by users, and not to engage in acts that unfairly consume company assets.
The company will have to appropriately disseminate information to users regarding the protection of their assets.
FTX will have to submit a written business improvement plan by November 16, 2022.
The regulator notes the halt of withdrawals by FTX as the main reason for issuing the orders.