FTX Apparently Has Three More Months To Cease Business In Japan
Because FTX Japan has not yet delivered assets that were taken into custody to its creditors, the Japanese authorities have decided to extend out the date on which the company would be placed under suspension.
The relevant authorities in Japan have granted permission to the Japanese subsidiary of the cryptocurrency exchange FTX, which is no longer in operation, to continue addressing issues with withdrawals until the following year. FTX was the first major cryptocurrency exchange to go out of business.
The Japanese regulatory authority has made the decision to extend out the date for the suspension of FTX's commercial operations to March 9, 2023. This constitutes a three-month extension of the initial time limitation that was put in place.
The initial request to freeze any business orders until December 9th came from Japan's Financial Services Agency (FSA) around halfway through the month of November. This request was issued to FTX Japan.
According to the notification, the direction to extend the deadline was given by the Kanto Local Finance Bureau since FTX Japan has, as of yet, failed to release assets that were in custody to their respective creditors.
The body that keeps an eye on the workings of the financial markets has emphasized that the FTX Japan trading system is not yet functioning.
In a subsequent blog post, FTX Japan provided confirmation of the most recent news by indicating that the exchange is moving through with a "business development plan" that the company had presented to the Kanto Local Finance Bureau on November 16. According to FTX Japan, the business development plan that the company presented to the Kanto Local Finance Bureau on November 16 is now being implemented by the exchange.
The exchange said that the platform has been inoperable for some time and added that it would not be possible to immediately reimburse clients' assets during this period. The inability to operate the platform has been going on for some time.
The notification came not long after FTX Japan publicized a plan on December 1 to begin processing withdrawals.
The exchange has already assured that the assets that belong to its customers would not be included in the procedures of bankruptcy for FTX.
Initially, the corporation anticipated that it would be ready to initiate withdrawals by the end of 2022 at the latest.
FTX began its operations in Japan in June 2022, as was originally reported, following the acquisition of the Japanese cryptocurrency exchange Liquid in February 2022.