FTX Japan Says When It Will Start Accepting Withdrawals Again
Once users remove their assets from the site, the Japanese exchange will cease all commercial operations.
After suspending the service last month due to the bankruptcy filing of its parent business, FTX Japan, the Japanese branch of the insolvent cryptocurrency exchange, intends to re-enable client withdrawals in mid-February of the next year.
FTX Japan previously promised to develop a new method to allow users to access their cash on the platform that is distinct from the one used by its parent business.
FTX Japan Works With Liquid to Repay Clients
A new post states that the exchange is collaborating with Liquid, a Japanese platform that FTX purchased this year to support its Asian development, to make the refund process easier for consumers.
“For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that withdrawals and withdrawals will be possible from the Liquid Japan web version,” the announcement reads.
As a result of the partnership, FTX Japan customers may access Liquid’s website to check their account balances and withdraw their assets. Users of Liquid, on the other hand, may withdraw money from the Liquid app.
It is a rare instance of investors receiving their money back when a company collapses since the two organizations designed a thorough roadmap to help with the withdrawal procedure.
Next year, FTX Japan Will Leave The Market
According to a new directive for the nation’s watchdog, the Kanto Local Finance Bureau, FTX Japan is likewise scheduled to leave the market the following year after making its clients whole.
The exchange was previously required by the Financial Services Agency (FSA) to stop providing parts of its services linked to OTC derivatives transactions and associated margins, including withdrawals. The FSA also required FTX Japan to retain its assets locally and to update its balance sheet’s total liabilities on a regular basis.
The demands followed FTX Limited’s decision to halt operations without clearly communicating this decision to creditors and investors. The FSA said that the action was taken to safeguard customers’ interests and stop the FTX crisis from spreading to its 130 affiliates throughout the world.
The Kanto Local Finance Bureau has ordered FTX Japan to leave the market on March 9, 2023, notwithstanding the FSA’s demands from last month. After the exchange failed to refund consumers’ assets on time, the federal regulator extended the deadline, which was originally slated to conclude on December 9.
