FTX Japan Announces Plans to Return Users’ Funds

FTX Japan Announces Plans to Return Users’ Funds

• FTX Japan has unveiled a roadmap to return funds to users through Liquid.

• A few weeks ago, FTX Japan disclosed that users’ funds were safe in cold wallets.

• FTX acquired Liquid Exchange in June to enter the Japanese cryptocurrency market.
• Users of FTX in Japan will be able to access their funds due to unique protection under the Japanese regulator.

In a blog post on Dec. 29, the Japanese branch of FTX announced plans to return users’ assets. The cryptocurrency exchange unveiled a roadmap that will aid users in reclaiming their assets through direct withdrawal from Liquid, a sister cryptocurrency exchange owned by FTX.

The development surfaced a few weeks after the Japanese branch of FTX disclosed that users’ funds are safe in a cold wallet.

FTX Japan is willing to return users’ assets through Liquid exchange. A part of the roadmap indicated that users would receive mail guiding them through the withdrawal process.

Users who don’t have an account with Liquid will get a registration link via mail. After registering, users will get a window to withdraw their funds on FTX Japan to their Liquid accounts.

FTX ventured into the Japanese market to provide cryptocurrency services in June after acquiring a local exchange, Liquid, in February. After FTX filed for Chapter 11 bankruptcy, Liquid suspended the withdrawal of funds on its platform.

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Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States. We will provide updates when available.

— Liquid Global Official (@Liquid_Global) November 15, 2022

Proper Regulation Protected Japanese Users of FTX Against SBF’s Mismanagement

Users of FTX Japan will have access to their funds due to the unique protection they enjoy under Japanese Financial Laws. The Japanese Financial Law mandates that cryptocurrency exchanges must separate customers’ deposits.

The Japan Financial Services Agency ordered FTX Japan to suspend business activities amid the FTX crisis. Despite suspending withdrawal, the subsidiary of FTX in Japan insisted that the assets on its cold wallet are more than the users’ assets in its custody.

Due to this, users of the cryptocurrency exchange in Japan were immune to the mismanagement of funds by the former CEO of FTX, Sam Bankman-Fried. The recent development further highlights why regulators around the globe must design clear-cut regulations that protect users.

On the Flipside

• Despite Japan’s efforts to become a crypto-friendly nation, U.S.-based crypto exchange Kraken recently announced that it would shut down its operation there, citing the current market conditions.

Why You Should Care

As a result of the recent development, FTX Japan became the first FTX subsidiary to announce the return of funds to its customers. As for FTX US customers, they are still uncertain about the status of their assets.

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See original on DailyCoin