FTX Japan, a Japanese Liquid cryptocurrency exchange, recently announced a delay in the resale of their services. Following the bankruptcy of their parent company FTX Global in late 2022, the Japanese branch was looking to initiate a process to safeguard their customer assets and property rights in accordance with Japanese law. In order to do so, FTX Japan is seeking the service of a custodian company to handle all customer funds separately from the exchange.

At the time of writing, FTX Japan customers can currently withdraw their money as well as their electronic assets starting February 21 local time. To prepare for the transfer of assets, the exchange sent an email to their users on February 16, informing them to check their balances. CEO Melamed is hopeful the process will be completed as planned and will be able to announce a successful resumption of withdrawals soon after sufficient data is collected and all related approvals for the balance transfer are obtained.

FTX Japan separates customer deposits for all 4 crypto assets handled, including Bitcoin and ETH, as well as their legal currency balance. As of December 26, 2022 the company managed an excess of customer deposits of over 6.3 billion yen, by 300 million yen.

In order to adhere to the Financial Services Agency's strict rules, FTX Japan is required to apply their separate asset management system under Japanese legislation. With their current processes, the Japanese branch has successfully managed mitigate the impact of FTX Global's bankruptcy and are slowly making strides towards providing a smooth refund process for their customers.



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