FTX Japan Receives an Extension of 3 Months to Terminate its Activities in Japan

The Japan-based sub-branch of now-bankrupt FTX has obtained authorization from the country’s native regulators to keep operating to resolve withdrawal-related issues. For this purpose, the regulatory agency has given a three-month time to the exchange. The financial regulator called the Kanto Local Finance Bureau, which operates under the Japanese Ministry of Finance, has released a statement about the operations of FTX Japan, as per the reports. On the other hand, SBF has agreed to the idea of issuing a new FTT token.

Japanese Regulator Reportedly Extends FTX Subsidiary’s Suspension by 3 Months

The agency has delayed the suspension of the business activities being carried out by FTX until its new deadline scheduled for the 9^th of 2023’s March. In this way, the time limit given to the entity has been extended by up to 3 months. Formerly, the deadline given by the Financial Services Agency (FSA) to FTX Japan for the suspension of its business orders was the 9^th of this month and it was declared in mid-November.

As per the declaration, the order for the extension in the respective deadline has been issued by the Kanto Local Finance Bureau. The reason for this directive is that the crypto entity has remained unsuccessful in returning assets to the creditors from its custody up till now. The regulatory organization stressed that the trading system of FTX keeps on being out of function. Subsequently, FTX Japan validated the respective news in its blog post.

The crypto exchange mentioned that it is following a business enhancement strategy that was filed by it on the 16^th of the last month under the Kanto Local Finance Bureau. The crypto exchange subsidiary brought to the front that the company has been going through an out-of-operation phase. Keeping this in view, the firm added, it would be impossible for it to instantly return the assets to the consumers.

FTX Japan Declares to Restart Customer Withdrawals

The respective news is reported soon after the release of a roadmap by FTX Japan on the 1^st of December to restart withdrawals. Formerly, it was confirmed by the crypto exchange that the assets of the clients were not included in the bankruptcy proceedings thereof. In the beginning, the company intended to restart the consumer withdrawals by this year’s end. According to the reports, the umbrella firm FTX established its Japanese subsidiary in June this year following the acquisition of a former crypto exchange named Liquid.