Japan’s government has ordered FTX.com’s local subsidiary to suspend some of its operations, saying it has no structure in place to properly offer cryptocurrency exchange services to users.
(Bloomberg) — Japan’s government has ordered FTX.com’s local subsidiary to suspend some of its operations, saying it has no structure in place to properly offer cryptocurrency exchange services to users.
The Kanto Local Finance Bureau instructed the unit to pause client services until Dec. 9, according to a statement released Thursday. The company is also not allowed to accept new assets from clients over that period.
The move follows the dramatic downfall of crypto mogul Sam Bankman-Fried, who on Wednesday told investors that his troubled exchange FTX may have to seek bankruptcy if it doesn’t get a bailout. He is shutting down Alameda Research, the trading house at the heart of his digital-asset empire, in an attempt to save the exchange.
The Japanese regulator said FTX’s decision to halt withdrawals of assets by clients means that it doesn’t have the necessary structure to provide crypto exchange services in a manner deemed appropriate under domestic standards. The government has asked the company to submit a business improvement plan by Nov. 16.
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