FTX Token to Decline Further, Japan Requests FTX Japan to Cease Operations

November seems to be the worst month for the FTX exchange. From the 8th of the month until now, several countries have asked FTX to cease its operations in their jurisdictions.

FSA’s Request to FTX Japan

Japan’s Financial Services Agency (FSA) has recently issued a request for the Japanese subsidiary of FTX, FTX Japan. The request launched by the FSA is for FTX Japan to cease its operations in the country.

The Japanese regulatory authority has announced that it has a disagreement with the policies of FTX Trading Limited. The platform’s policies are no longer favorable or beneficial for Japanese investors.

Therefore, the Japanese regulator has asked that FTX Japan must cease its operations in the country. Following the request, the business orders taken by FTX Japan from the local investors must be suspended.

The FSA Made a Public Announcement

Japan is among the countries that are very vigilant and proactive when it comes to the adoption of cryptocurrencies. It is highly concerned about the safety of funds and the interests of the local investors.

In light of the recent developments, the FSA is not ready to compromise and jeopardize the funds of the investors.

Therefore, the FSA made a public announcement on November 10, intimating to the investment community about its decision.

Regulator Reasoned with the Local Investors

The regulator announced that it was required of them to take administrative actions against FTX Japan. FTX Trading Limited recently proceeded with the suspension of withdrawals for international investors.

The regulator claimed that it fears the same would happen to the Japanese branch of FTX. If the same happens in Japan, millions of users would end up losing their funds and investments.

The Japanese investment community had already faced a major impact due to the Terra Network crash in May 2022. Therefore, the regulatory authority is not going to take any chances.

As communicated by the FSA spokesperson, they have already issued two main orders for FTX Japan. The first order is for business improvement and the second order is for the suspension of user orders.

The FSA spokesperson clarified that both orders have been issued in accordance with the Financial Instruments and Exchange. The other Act they have quoted is the Payment Services Act of Japan.

FTT Takes a Hit

Day after day, FTX is finding itself exiled from countries that once welcomed it with open arms. As a result, the value of the ‘already plunged’ FTX Token is declining even more.

As the news came in from Japan, the trading price of FTT plunged 11.18% in the past 24 hours. At the time of writing, FTT’s trading price is worth $1.88.

By Brandon Craig
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