FTX Japan Plans to Restart Local Customer Withdrawals
- December 8, 2022
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A subsidiary of the crypto exchange has confirmed that they will continue to protect customer funds in Japan. They are doing so despite the ongoing bankruptcy proceedings in the U.S.
One of the FTX’s subsidiaries, which offers Japan-based digital currency withdrawal services called FTX Japan, announced on Saturday that it is going to resume withdrawals after a plan for returning deposits was approved by its parent company, the failed FTX exchange.
Japan’s Financial Services Agency has implemented a system that would allow users of a collapsed crypto exchange to retrieve their investments.
Changes to Japan’s financial rules have caused FTXJapan to halt withdrawals. They’ll stop suspending services after receiving regulatory approval and restarting operations by Jan. 8. For now, FTX Trading Ltd., Sam Bankman-Fried’s American company, is waiting while other foreign subsidiaries of the Tokyo-based FTX Group Holdings will continue fine business as usual.
FTX Japan has confirmed that any funds belonging to Japanese customers will be excluded from their bankruptcy estate, as they are separate from any of FTX Japan’s assets.
FTX Japan claims to have been working on the plan to restart withdrawals for the last two weeks and says it was approved by FTX Trading management.
Read more: FTX Japan Preparing to Allow Withdrawals by Year End, Report Says
“Development work for this plan has already started and our engineering teams are working to allow FTX Japan users to withdraw their funds. As part of the plan, we’re putting in place controls, security audit, reconciling balances, and reviews to develop a robust process,” the notice said.
The subsidiary will publish information about customer assets held in segregated wallets and a trust account each Monday.
“In the meantime, FTX Japan aims to publish additional information regarding the resumption of withdrawals for FTX Japan users in short order,” the notice said.