Line shuts down crypto exchange to focus on blockchain and LN token

November 28, 2022 Coin Telegraph

The Japanese messaging giant will still continue to support its Line blockchain ecosystem and the Link token despite the ongoing industry challenges.

The Japanese messaging giant Line has decided to shut down its cryptocurrency exchange business amid the ongoing crypto winter.

Line-owned crypto exchange Bitfront officially announced on Nov. 27 a plan to completely close down the platform by March 2023.

According to the statement, the closure was driven by the continued cryptocurrency bear market and other issues in the crypto industry.

Despite the exchange’s closure, Line will still continue to run its other blockchain ventures, including the Line blockchain ecosystem and Link (LN) token, the announcement notes, stating:

“Despite our efforts to overcome the challenges in this rapidly-evolving industry, we have regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.”

Bitfront also emphasized that the decision to close the exchange was made for the “best interest” of the Line ecosystem and is unrelated to the ongoing industry scandal involving the FTX exchange.

According to the announcement, Bitfront will take a gradual approach to suspend its services, stopping signups and credit card payments on Nov. 28. The platform then plans to suspend additional deposits and interest payments of LN interest products and proceed with the related LN withdrawals by mid-December.

By the end of December, Bitfront aims to stop all cryptocurrency and fiat deposits alongside trading suspension and cancellation of open orders. Total suspension of withdrawals is scheduled for March 31, 2023, while customers would be still able to claim their assets in different jurisdictions of the United States.

As previously reported by Cointelegraph, Line launched its proprietary crypto exchange in 2018 as a Singapore-based business. Originally known as BitBox, the company was rebranded to Bitfront and moved to the U.S. in February 2020. The exchange has been downscaling some of its operations in recent years, suspending services in South Korea in August 2021.

Despite being a smaller crypto exchange, Bitfront has significant trading volumes at the time of writing. According to data from CoinGecko, Bitfront's daily trading volume amounts to $55 million, with the exchange trading a total of five cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Link, Litecoin (LTC) and Tether (USDT).

Bank of Japan to trial digital yen with three megabanks

November 23, 2022 Coin Telegraph

Bank of Japan

The Japanese central bank plans to make a decision on whether to issue a digital currency by 2026.

Despite Japan’s uncertainty on whether to issue a central bank digital currency (CBDC), the Bank of Japan (BoJ) continues experimenting with a potential digital yen.

The Japanese central bank has started a collaboration with three megabanks and regional banks to conduct a CBDC issuance pilot, the local news agency Nikkei reported on Nov. 23.

The pilot aims to provide demo experiments for the issuance of Japan’s national digital currency, the digital yen, starting in spring 2023.

As part of the trial, the BoJ is expected to cooperate with major private banks and other organizations to detect and solve any issues related to customer deposits and withdrawals on bank accounts. According to the report, the pilot will involve testing the offline functionality of Japan’s possible CBDC, targeting payments without the internet.

Japan’s central bank plans to proceed with its CBDC experiment for about two years and make a decision on whether to issue a digital currency by 2026, the report notes.

The news comes amid countries around the globe increasingly launching CBDC research and development initiatives, with countries like China leading the global CBDC race.

As Cointelegraph reported on Nov. 22, the Reserve Bank of India is preparing to start a retail pilot of the digital rupee in collaboration with major local banks including the State Bank of India in December. In mid-November, the Federal Reserve Bank of New York’s Innovation Center announced the launch of a 12-week proof-of-concept CBDC pilot in partnership with banking giants like BNY Mellon, Citi, HSBC and others.

While the majority of the world has been rushing to launch a CBDC, some countries like Denmark have dropped out of the digital currency race. Among reasons for dropping their CBDC or CBDC-related projects, the central banks listed potential difficulties for the private sector, questionable value and benefits and other issues. Still, no central bank has ruled out the possibility of launching a CBDC completely.

FTX Japan plans to resume withdrawals by 2023: Report

November 21, 2022 Coin Telegraph

Bankruptcy

Japan’s Financial Services Agency requested the exchange suspend business orders on Nov. 10 prior to FTX Group declaring bankruptcy in the United States.

Crypto exchange FTX’s subsidiary in Japan, FTX Japan, reportedly plans to resume withdrawals by the end of 2022.

According to a Nov. 21 report from Japan-based news outlet NHK, FTX Japan has been making preparations to resume withdrawals. Japan’s Financial Services Agency, or FSA, requested the exchange suspend business orders on Nov. 10 prior to FTX Group declaring bankruptcy in the United States for more than 130 associated companies, including FTX Japan Holdings, FTX Japan, and FTX Japan Services.

On Nov. 11, the FSA announced that it had taken administrative actions against FTX Japan amid reports its parent company was “facing credit uncertainties.” The orders required FTX Japan to suspend over-the-counter derivatives transactions and related margins as well as new deposits from users from Nov. 10 to Dec. 9 unless directed otherwise by the financial regulator. FTX Japan should have also submitted a plan by Nov. 16 on how the exchange intended to protect investors and provide transparency on the ongoing situation.

Citing an unnamed executive at the Japanese exchange, NHK reported that FTX Japan had roughly 19.6 billion yen in cash — more than $138 million — as of Nov. 10 when it ceased operations. The Japan-based company was also reportedly for sale amid FTX Trading’s bankruptcy proceedings in the United States.

Other FTX subsidiaries have taken similar actions in response to ongoing litigation against the company. Liquid, one of FTX Group’s companies also based in Japan, announced on Nov. 20 that it had paused “all forms of trading” due to the firm filing for bankruptcy under Chapter 11. LedgerX, owned by FTX US under the firm West Realm Shire Services, may be exempt as a debtor in FTX’s bankruptcy filing.

FTX-owned Liquid exchange pauses all trading after withdrawal halt

November 21, 2022 Coin Telegraph

Coin Telegraph

Liquid’s operational halt comes five days after the exchange suspended all withdrawals due to FTX’s bankruptcy filing.

Liquid has suspended all trading operations on its platform in line with instructions from FTX Trading, the firm announced on Twitter on Nov. 20. The statement indicates that Liquid exchange paused “all forms of trading” because of the operation of the Chapter 11 process in the Delaware courts.

“We have since done so while we assess the situation. We are working through these issues and will endeavor to give a fuller update in due course,” Liquid added.

Liquid’s operational halt comes five days after the exchange suspended all withdrawals on its platform, citing compliance with the requirements of voluntary Chapter 11 proceedings. Japan’s Financial Services Agency previously also requested another FTX’s local subsidiary, FTX Japan, to suspend business orders on Nov. 10.

As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that faced issues due to the ongoing bankruptcy proceedings of its parent firm. Bankrupt crypto lender Voyager Digital has been trying to find another buyer after FTX US acquired its assets in September. Crypto exchange CrossTower has been working on a revised offer for Voyager’s assets as the firm has reopened the bidding process, Cointelegraph reported on Nov. 13.

Other FTX subsidiaries, including LedgerX — which does business as FTX US Derivatives — have been actively working to spin out from FTX. According to a strategic review of FTX’s global assets, LedgerX was exempted as a debtor in FTX’s bankruptcy filing. According to a review by the financial services firm Perella Weinberg, many regulated or licensed subsidiaries of FTX have “solvent balance sheets, responsible management and valuable franchises.”

Perella Weinberg found that some FTX’s subsidiaries — including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE and Zubr Exchange — are debtors.

The Japanese cryptocurrency exchange Liquid is halting all trading due to FTX filing for Chapter 11 bankruptcy protection in the United States.

FTX-owned crypto exchange Liquid halts all withdrawals

November 15, 2022 Coin Telegraph

Coin Telegraph

Sam Bankman-Fried’s FTX exchange acquired the Japanese crypto trading platform Liquid Group and its subsidiaries in February 2022.

The Japanese cryptocurrency exchange Liquid is the latest company to halt withdrawals amid the ongoing crisis of centralized crypto exchanges.

The FTX-owned crypto exchange Liquid took to Twitter on Nov. 15 to officially announce a suspension of fiat and crypto withdrawals on its Liquid Global platform.

Addressing the reasons for the suspension, Liquid cited compliance with the requirements of voluntary Chapter 11 proceedings in the United States, noting:

“Due to the Chapter 11 filing by FTX Trading International, the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchange (Quoine Pte.) is halting all withdrawals — both fiat and crypto currency.”

The exchange emphasized that the latest measures are “not a security related halt,” adding that it will provide more information at a later date. The firm also suggested that its users should not deposit either fiat or crypto until more updates are available.

Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.

Until further notice we would suggest to not deposit either FIAT or Crypto

We will provide updates when available.
— Liquid Global Official (@Liquid_Global) November 15, 2022

The news comes shortly after Liquid claimed that customer assets on Liquid wallets were not impacted by the FTX contagion, with FTX exchange halting all withdrawals on Nov. 10.

“We have conducted initial checks and see no unusual activity,” Liquid said in a tweet on Nov. 12. However, Liquid immediately announced a suspension of crypto withdrawals on Liquid Global as a “precautionary measure,” until “additional security checks are completed.”

The Nov. 12 statement was Liquid's first appearance on Twitter since late August 2022. It came shortly after Japan’s Financial Services Agency requested FTX Japan to suspend business orders on Nov. 10.

Founded in 2014, Liquid is a major cryptocurrency exchange licensed under Japan’s Payment Services Act through its Japanese operating entity, Quoine Corporation. As previously reported by Cointelegraph, FTX exchange acquired Liquid Group and its subsidiaries in February 2022.

Japanese Regulator Slaps FTX Japan With Business Suspension Order

November 12, 2022 Bitcoin.com

Japan’s financial regulator requests FTX Japan halt operations

November 10, 2022 Coin Telegraph

Coin Telegraph

Under the orders, FTX Japan will be required to suspend OTC derivatives transactions and related margins as well as new deposits from Nov. 10 to Dec. 9 unless the FSA steps in.

The Financial Services Agency, or FSA, of Japan has requested FTX Japan suspend business orders, citing the policies of FTX Trading Limited.

In a Nov. 10 announcement, the FSA said it had taken administrative actions against FTX Japan following FTX Trading Limited’s suspension of withdrawals “without explaining the reasons clearly to investors.” The financial regulator said it had issued suspension orders and business improvement orders in accordance with Japan’s Payment Services Act and Financial Instruments and Exchange Act.

“There have been reports that FTX Trading Limited is facing credit uncertainties,” said the FSA. “It is necessary to take all possible measures to prevent a situation in which the interests of creditors and investors are harmed by the outflow to affiliated companies of the company. Therefore, this situation of our company is not recognized as having the necessary system in place to properly carry out [its financial obligations].”

Under the orders, FTX Japan will be required to suspend OTC derivatives transactions and related margins as well as new deposits from users from Nov. 10 to Dec. 9 unless the FSA steps in. The financial regulator also ordered the exchange to hold its asset domestically over the same timeframe, properly reporting liabilities on its balance sheet.

FSA’s business improvement order requires FTX Japan to submit a plan by Nov. 16 which includes how it intends to protect investors and provide transparency on the ongoing situation with FTX:

“Until the implementation of the business improvement plan is completed, monthly progress and implementation status shall be reported in writing by the 10th of the following month.”

Formerly the Quoine Corporation, FTX Japan was launched in June by FTX to service Japanese crypto users following the acquisition of the Liquid exchange in February. FTX CEO Sam Bankman-Fried, who recently apologized for not providing transparency around the “liquidity crunch” the exchange was facing, also served as the Interim CEO of FTX Japan at launch.

Though Bankman-Fried said United States-based exchange FTX US — a separate business entity from FTX — “was not financially impacted” by the problems facing the major exchange, it’s unclear how FTX's difficulties may impact FTX Japan's business and operations.

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Japan’s largest mobile operator to establish Web3 consortium

November 8, 2022 Coin Telegraph

Coin Telegraph

Partially owned by the state, NTT Docomo aims to to accelerate the Web3 adoption in the Japan.

NTT Docomo, Japan’s largest mobile operator with over $40 billion in annual revenue, partnered with multichain smart contract platform Astar Network to accelerate the Web3 implementation in the country. The joint effort will take the form of a consortium, which would give individuals and corporations the ability to utilize tokens for governance.

According to a press release from Nov. 9, Astar Network and NTT Docomo have also specifically agreed to collaborate on three fundamentals. They will pursue sustainable development by researching case studies for environmental issues in Web3, try to eliminate technology gaps on the road to wider Web3 adoption by educating people and provide opportunities for engineers and business leaders to learn and gain practical experience.

Astar Network CEO Sota Watanabe said the project’s mission is to bring Web3 out of a narrow tech-savvy circle to the general public:

“In this context, more robust cases with excellent user experience on an infrastructure that is accessible to everyone is essential. It is about making a society where more people can truly enjoy the benefits of Web3, not just engineers.”

Recently, Japan, which ones roughly one-third of Docomos’ shares, has been showing a growing interest in Web3, crypto and decentralized finance (DeFi). On Nov. 2, The Digital Agency of Japan launched a research decentralized autonomous organization to study Web3. In late October, the country’s second-largest port city, Fukuoka, partnered with Aster Labs to develop new use cases for Web3 technologies.

While the country still has rather tough crypto regulations, its prime minister is quite vocal on the government’s plans for major investment in Web3 and metaverse initiatives. The Japan Virtual and Crypto Assets Exchange Association has also promised to make it easier for authorized exchanges to list digital currencies by loosening the screening process.

Japan

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