The Japanese Minister of Finance, Shunichi Suzuki, has provided an explanation of why the Japanese regulators decided to put a halt to the business operations of FTX Japan. Regardless of the circumstances, the Japanese government continued to take measures to ensure that FTX Japan customers received assistance.
During a press conference that took place after a meeting of the cabinet, Suzuki made the following remarks: "We must take all conceivable measure to ensure that the interests of FTX Japan users are well protected."
Following the dissolution of FTX Japan's parent company, Japan's financial regulators moved rapidly to put a stop to the operation of the cryptocurrency exchange by issuing a directive to that effect. Additionally, FTX Japan has been instructed to present a business development plan by November 16 of this year.
Note that in response to the decision made by its parent company, FTX, FTX Japan stopped allowing users to withdraw funds from their accounts. However, it did not stop other transactions from taking place on the platform.
After the withdrawals were temporarily halted, it asked FTX Japan to announce when they will begin processing them again. As a response to FAS, FTX Japan made a statement on its website stating that the funds of its users are safe.
The company claims that it uses a unique approach when managing the funds and assets of its customers. However, it is in accordance with the laws that are outlined by the FSA as well as Japanese law.
In addition, FTX Japan asserts that it has access to a sum that is more than the aggregate value of all of the assets possessed by users of their platform. It was asserted that the sum in question is held in a cold wallet in addition to a trust bank account.
A breakdown of FTX Japan's money as well as the total digital assets possessed by its users was just made public. However, it has not yet provided an announcement regarding when users will be able to withdraw funds from the exchange.
The company has said publicly that it has a net worth of $72.6 million and that it stores customer assets and fiat currency with a total value of $140 million in its cold wallets.
Are Customers' Assets Protected When Storing Them at FTX Japan?
FTX Japan has announced that it is participating in the Chapter 11 bankruptcy application that the FTX parent company has submitted in the United States. However, FTX Japan emphasized that all of the assets retained in its custody by its customers are strictly divided and regulated in accordance with the Japanese laws and regulations that govern the financial services industry.
Cold wallets are used by the corporation to keep its crypto assets, whereas trust accounts are used for the storage of fiat currencies. Because of this, FTX Japan customers can rest easy knowing the safety and security of their assets.
In addition, FTX Japan has said that the company will keep all of its customers updated on the progress made toward resuming normal business operations when the appropriate time comes. Despite this, there is a possibility that legal issues in the United States will significantly delay down the process of returning to normal business.
