The Japanese subsidiary of disgraced cryptocurrency exchange FTX has received approval from local regulators to continue fixing withdrawal issues until next year.
The Kanto Local Finance Office, a local financial regulator under Japan’s Ministry of Finance, has issued a statement regarding the operations of FTX Japan, Reuters reports.
The Japanese authority has postponed FTX’s business suspension term to March 9, 2023, extending the original term by three months. In the middle of November, The Japan Financial Services Agency (FSA) initially requested FTX Japan to suspend trading orders before December 9.
According to the announcement, the Kanto Local Finance Office ordered the extension of the deadline because FTX Japan has so far failed to return the assets in custody to creditors. The regulator stressed that FTX Japan’s trading system is still not working.
FTX Japan later confirmed the latest news in a blog post, stating that it is carrying out a “business improvement plan” which the company submitted to the Kanto Local Finance Office on November 16. The exchange noted that the platform has been down, adding that “it is not possible to quickly return client assets.”
The news comes shortly after FTX Japan published a roadmap for resuming withdrawals on December 1. The exchange previously confirmed that its client assets were not part of FTX’s bankruptcy proceedings. Initially, the company planned to resume withdrawals at the end of 2022.
As we already told you before, FTX launched its Japanese subsidiary in June 2022 after acquiring Japanese exchange Liquid in February.
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