FTX, a cryptocurrency trading platform, has seen thousands of users at its Japanese sister company, Liquid Global, withdraw funds since Tuesday. On Wednesday, the subsidiary firm announced that its crypto holders and investors withdrew nearly 6.6 billion Japanese Yen, or $50 million USD.
The withdrawal was composed of both fiat and crypto tokens, with 7,026 accounts transferring funds from FTX Japan to Liquid Global. Specifically, 1,947 users withdrew fiat currencies and 5,697 withdrew cryptocurrencies. In order to transfer their assets to Liquid accounts, people withdrawing their funds from FTX Japan must first confirm their account balances.
This news comes after the US crypto firm filed for bankruptcy in mid-November. According to a NHK report, FTX Japan subsequently froze millions in assets to over 9 million holders, totalling around $138 million USD after halting withdrawals.
Japan has recently proposed to ease regulations on cryptocurrency tax regimes in order to boost the nation’s position as a global fintech hub. As people on the FTX platform withdraw their funds from the bankrupt exchange, potential investors may be encouraged to look towards a more mature domestic market when investing their crypto assets.
The cryptocurrency industry has seen a surge in popularity in recent years, with the global market cap of digital assets reaching over $1 trillion USD in 2021. This has resulted in a rise in the number of crypto exchanges and platforms, with Japan being one of the most active markets in the world.
Despite the popularity of cryptocurrency, the industry still faces many challenges. In particular, the lack of regulation and the high risk of fraud have been major issues for investors. As such, investors must exercise caution when choosing an exchange or platform to use.
FTX Japan’s bankruptcy and the subsequent withdrawals of millions of dollars from the platform serve as a reminder of the risks associated with the cryptocurrency industry. The news also highlights the need for investors to do their due diligence before investing in any digital asset.
In addition, the Japanese government’s proposed tax reforms may help to further legitimize the industry, as well as providing potential investors with more confidence when investing in crypto assets.
Ultimately, the news of FTX Japan’s bankruptcy and the subsequent withdrawal of millions of dollars from the platform serves as a reminder of the risks associated with cryptocurrency investments. While the proposed tax reforms may help to provide some security to investors, it is important that they exercise caution and do their due diligence before investing in any digital asset.
