Japanese Regulator Extends FTX Japan’s Suspension as Users Wait for Their Funds

The Financial Services Agency ordered that operations stay suspended for another three months.

AccessTimeIconDec 9, 2022 at 12:58 p.m. UTC
Updated Dec 9, 2022 at 5:05 p.m. UTC
Drive the Crypto Policy Conversation Forward
October 24, 2023 • Convene • Washington D.C.Where the industry establishes the digital economy’s legal, regulatory and compliance best practices for the future.Register Now

Japan’s Financial Services Agency (FSA) has extended FTX Japan's suspension to March 9. An earlier suspension order, issued on Nov. 10 after FTX Japan halted user withdrawals, was set to expire on Friday.

The FSA reiterated its earlier position, saying that it is necessary to take all possible measures to ensure that FTX Japan's assets do not flow out to overseas affiliates and that the interests of users are not harmed.

Japan may be one of very few jurisdictions where FTX customers might be able to receive their funds back, following the collapse of Sam Bankman-Fried's crypto exchange in early November.

FTX Japan said the company is proceeding with the business improvement plan submitted to the regulator on Nov. 16, in a notice posted on its website today. Trading services, deposits and account opening will remain suspended.

It has been working on a plan to return user assets but has not released specifics on when users can expect to receive their funds back.

The FSA responded to a written enquiry from CoinDesk saying that it had ordered FTX Japan to return assets promptly, but had not given a specific deadline.

“We understand that client assets held by FTX Japan are preserved and segregated from its own assets,” the FSA wrote to CoinDesk.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Lavender Au

Lavender Au is a CoinDesk reporter with a focus on regulation in Asia. She holds BTC, ETH, NEAR, KSM and SAITO.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Read more about