FTX Japan Ordered to Suspend Operations: What You Need to Know

Financial regulators have ordered FTX’s Japan arm to suspend operations in the country, marking a significant development in the ongoing FTX saga. Japan's Financial Services Agency (FSA) has taken decisive action, ordering FTX Japan to halt operations.

The Kanto Local Finance Bureau issued an Order to Suspend Business and a Business Improvement Order to FTX Japan, Inc.（Chiyoda City, Tokyo). This follows the platform’s withdrawal halt and growing concerns surrounding the cryptocurrency exchange.

Why the Suspension?

Japan's Financial Services Agency has ordered FTX's local unit to suspend operations, according to an official announcement made on Thursday. The Japanese Financial Services Agency (FSA) has ordered the local FTX division to suspend operations. According to Foresight News, the Japanese Financial Services Agency (FSA) has ordered FTX Japan to suspend operations.

The regulator wants FTX Japan to halt trading and, crucially, protect user assets. The FSA also outlined a “business improvement plan” that must identify weaknesses and propose solutions to ensure compliance and protect investors.

Close-Only Mode

FTX Japan said Thursday it is going into close-only mode, meaning users will only be able to close out existing positions but not initiate new ones, following an official order earlier in the week. The regulator ordered FTX Japan to immediately cease its digital asset exchange services.

What’s Next for FTX Japan?

The regulator hopes that FTX Japan will immediately stop its current practices and implement a robust plan to address the issues identified by the FSA. This order signifies the stringent regulatory environment in Japan and the commitment of authorities to safeguarding investor interests in the volatile cryptocurrency market. Stay tuned for further updates as the situation develops.