Local regulators have given FTX Japan permission to work through withdrawal-related problems until the coming year. The Kanto Local Finance Bureau, a regional financial regulator, operating under the Japanese Ministry of Finance, has released a statement regarding FTX Japan operations, according to Reuters.
The Japanese government has extended the date for FTX’s business suspension by three months to March 2023. Japan’s Financial Services Agency (FSA) first asked FTX Japan to halt business orders by Dec 9 in mid-November.
After FTX Japan stopped allowing withdrawals of crypto assets, the Japanese FSA ordered a suspension of operations on Nov 10. Following a significant selloff of FTX Token (FTT) as a result of misusing client cash with sibling company Alameda. It resulted in FTX permanently halting withdrawals.
Due to FTX Japan’s failure to deliver assets into the custody of creditors, the Kanto Local Finance Bureau imposed an extension of the deadline. The regulator emphasized FTX Japan’s trading system’s ongoing instability.
FTX japan is moving on with a “business improvement plan.” which was submitted to the Kanto Local Finance Bureau on Nov 16. The exchange added that it is challenging to restore customers’ assets rapidly.
Related Reading | FTX CEO Sam Bankman-Fried Under Investigation For TerraUSD & Luna Manipulation
According to the Financial Services Agency of Japan, the suspension of Japan’s cryptocurrency exchange will be extended. FSA made this decision when the Japanese arm took longer than usual to resume withdrawals and restore customer monies.
However, since FTX’s bankruptcy has no impact on the assets, the exchange has declared restoring customer funds. The crypto exchange plans to resume withdrawals once U.S. bankruptcy attorneys have confirmed it.