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Bankruptcy Estate FTX raised concerns about paying creditors in countries with ambiguous or restrictive cryptocurrency regulations.
Wednesday, FTX Estate submitted A proposal with the US bankruptcy court for the District of Delaware, which was looking for a authorization for the FTX Recovery Trust to freeze the distribution to creditors in “potentially limited foreign jurisdictions”.
Jurisdiction-Lead 49 countries-have unclear or restrictive cryptological laws, which potentially pose risks due to complex cross-border legal consequences.
“Distribution performed or on behalf of the Trust FTX Recovery Trust to jurisdictions contrary to these legal restrictions can cause fines and sanctions, including personal responsibility for director and officials and/or criminal sanctions until and including imprisonment,” he reads.
China and Russia between these countries
With FTX creditors located worldwide, bankruptcy assets take steps to ensure compliance with local laws in each jurisdiction before the cryptocurrency distribution.
Although regulations within 49 countries identified, they generally forbid individuals or entities to participate in any activities related to digital assets, including crypto -gathering or distribution of crypto related returns to residents within these jurisdictions, the property said.
“For example, in Macau,” financial institutions and non -banking payment institutions are expressly forbidden by the land authorities to provide services for these tokens and virtual currencies, “he said.
He added that all countries of these countries are subject to similar restrictions, referring to jurisdictions such as China, Egypt, Iran, Russia, Saudi Arabia, Ukraine and others.
FTX Estate needs clarity
In highlighting potentially limited jurisdictions for FTX distribution, the property does not completely block the payouts to the countries completely.
Instead, he stated that the Renewal Trust holds the distribution waiting for the solution and is ready to clean some of them with the process procedure.
According to the FTX estate, China represents 82% of the value of the affected claims between the total number of potentially limited foreign jurisdictions.
China on the mainland remains one of the most promising jurisdictions concerning cryptocurrencies as are the regulatory authorities Repeatedly forbidden crypto transaction but not explicitly prohibited Individuals from holding digital assets.
Neighboring jurisdiction as Hong Kong captured the pro-crito attitudeGreenlighting Crypto Investment Products, such as derivatives and funds traded.
Related: Payments of crypto abroad can be legal despite domestic prohibitions in several countries
“To ensure the clarity of the FTX renewal confidence and its participating parties, it has developed a Trust to restore FTX limited jurisdic procedures that provide the announcement and the process of resolving the question whether they will be divided as planned,” added: He added: He added:
“The assessment and approval of the procedures of limited jurisdiction is in accordance with SA to support the plan.”
Although some in the community expressed outrage over the FTX Estate approach to potentially limited countries for distributions, others suggested that his attitude is reasonable.
“As far as the division of tokens in bankruptcy is concerned, there is still significant legal uncertainty, and I am not surprised that FTX does not have to distribute in countries where such a division could be illegal,” said Aaron Brogan, founder and lawyer in Brogan Law, Caintelegraph.
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