Blockchain News

FTX Reportedly Gets 3 More Months to Stop all Operations in Japan

Because FTX Japan has not yet returned assets that were taken into custody to its creditors, the Japanese authorities have decided to push back the deadline for the firm’s suspension.

The Japanese subsidiary of the cryptocurrency exchange FTX, which is no longer in business, has been given permission by the competent authorities in that country to continue resolving problems with withdrawals until the following year.

According to Reuters, the Kanto Local Finance Bureau, which functions as a local financial regulator and is overseen by the Japanese Ministry of Finance, has issued a statement regarding the operations of FTX Japan.

The Japanese regulatory body has decided to push back the deadline for FTX’s business suspension until March 9, 2023, which represents a three-month extension of the original time limit. Midway through the month of November, Japan’s Financial Services Agency (FSA) made the initial request to FTX Japan to halt all business orders until December 9th.

The announcement states that the Kanto Local Finance Bureau has issued the directive to extend the deadline because FTX Japan has, as of yet, failed to return assets that were in custody to their respective creditors. The authority that oversees financial markets emphasized that the FTX Japan trading system is still not operational.

FTX Japan subsequently confirmed the latest news in a blog post, stating that the exchange is proceeding with a “business improvement plan” that the firm submitted to the Kanto Local Finance Bureau on November 16. FTX Japan stated that the exchange is proceeding with a “business improvement plan” that the firm submitted to the Kanto Local Finance Bureau on November 16. The exchange mentioned that the platform had been inoperable for some time and added that it was “not possible to quickly return customer’s assets.”

The announcement was made not long after FTX Japan on December 1 published a roadmap to resume withdrawals. The exchange had previously confirmed that the assets belonging to its customers would not be involved in the bankruptcy proceedings of FTX. At first, the company believed that it would be able to resume withdrawals by the end of 2022.

Following the acquisition of the Japanese cryptocurrency exchange Liquid in February 2022, FTX launched its Japanese operations in June 2022, as was previously reported.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.