The Japanese subsidiary of the now-defunct cryptocurrency exchange FTX has received approval from local regulators to continue to resolve withdrawal issues until next year.
The Kanto Local Finance Bureau, the local financial regulator affiliated with Japan’s Ministry of Finance, released a statement regarding FTX Japan’s operations, Reuters reported.
The Japanese authorities have postponed the FTX suspension deadline to March 9, 2023, extending the original deadline by three months. In mid-November, the Japan Financial Services Agency (FSA) initially requested FTX Japan to suspend business orders until December 9th.
According to the announcement, the local financial bureau of Kanto has ordered an extension of the deadline as FTX Japan has still not returned custody assets to creditors. The regulator emphasized that the FTX Japan trading system is still not working.
FTX Japan subsequently confirmed the latest news in a blog post, saying the exchange was working on a “business improvement plan” that the firm submitted to the local Kanto financial bureau on Nov. 16. The exchange noted that the platform went down. feature, adding that “it is not possible to quickly return the client’s assets.”
Related: FTX-owned Liquid Exchange Suspends All Trading After Stopping Withdrawals
The news comes shortly after FTX Japan posted a plan to resume withdrawals on December 1st. The exchange previously confirmed that its clients’ assets are not part of FTX’s bankruptcy proceedings. Initially, the company planned to resume withdrawals by the end of 2022.
As previously reported, FTX launched its Japanese division in June 2022 after acquiring Japanese cryptocurrency exchange Liquid in February.