Following the recent adverse events surrounding the crypto exchange FTX, the Japanese government has promised to do everything possible to protect the customers of FTX based in Japan.
Shunichi Suzuki, Japan’s minister of finance, has explained that FTX Japan was hit with a suspension in business operations by the Japanese regulators. Regardless, the Japanese government was still taking action to see that FTX Japan customers were being helped.
Suzuki made these remarks at a press conference following a cabinet meeting: “We must take all possible precautions to ensure the interests of FTX Japan users are well protected.”
After the collapse of FTX Japan’s mother company, Japan’s financial watchdog reacted swiftly by giving the crypto exchange a business suspension directive. FTX Japan has also been ordered to submit a business improvement plan by November 16.
Note that FTX Japan halted users from withdrawing funds following the decision of its mother company, FTX, but it did not halt other transactions being made on the platform.
After the suspension, it requested FTX Japan to disclose when they will resume withdrawals. In response to FAS, FTX Japan stated on its website that users’ funds are secure.
According to the company, it handles customers’ funds and assets differently. But it conforms with the laws outlined by the FSA and Japanese law.
Furthermore, FTX Japan claims to have access to an amount greater than the total amount of assets owned by users on their platform. It claimed that this amount is stored in a trust bank account and a cold wallet.
FTX Japan has released a breakdown of its funds and the total digital assets owned by its users. But it has yet to announce when withdrawals from the exchange will be permitted.
The firm published that it has a net worth of $72.6 million and holds customer assets and fiat worth $140 million in cold wallets.
Are Customer Assets Safe At FTX Japan?
FTX Japan said it was part of the Chapter 11 bankruptcy application filed in the United States by the FTX parent company. But FTX Japan added that all assets kept in its custody by their customers are rigidly separated and controlled per the Japanese laws and regulations guiding the financial services industry.
These crypto assets are stored in cold wallets, and the company uses a trust account to hold fiat currency. This is to assure FTX Japan customers their assets are safe and secure.
In addition, FTX Japan has said the firm will notify all its users of the progress made in restoring normal operations in due time. Nevertheless, legal problems in the United States may still greatly slow the process of resuming normal operations.
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