By Michael Scott
Japanese authorities announced a new deadline for FTX – Japan to cease operating in the country. The Japanese subsidiary of the embattled FTX crypto exchange announced securing regulators’ approval to sort withdrawal issues for another 3 months.
New Deadline Issued
The Kanto Local Finance Bureau confirmed the decision to postpone the suspension deadline to March 9 next year. The regulator within the Ministry of Finance noted that FTX-Japan failed to complete the assets’ return to creditors as ordered by the Financial Services Agency (FSA).
FSA had previously set December 9 as the original deadline when FTX-Japan should cease operations in the country. The mid-November statement restricted FTX operations in Japan till December 9 to facilitate the return of digital assets to its creditors.
Race to Return Customers’ Assets
The statement by the Kanto Local Finance Bureau notes that FTX-Japan should expedite the transfer of the assets from custody. Nevertheless, the local regulator clarified that the FTX operating license was suspended, rendering the trading system functionless.
FTX-Japan confirmed the announcement by the local regulator, indicating the exchange will utilize the timeline provided to restructure the business improvement plan.
The subsidiary of the embattled FTX-Group indicated that improving the plan submitted to the local regulator on November 16 was a priority. In its response to the inquest on delayed assets’ return, FTX-Japan indicated that the period the platform suspended operations made it challenging to expedite the return of clients’ assets.
Endless Twist in FTX-Japan Fate
Surprisingly, news extending the deadline for another 3 months came after FTX-Japan disclosed on December 1 its roadmap to restore withdrawals. FTX-Japan representatives reiterated its autonomous status and that the customers’ assets did not constitute the New York District Court bankruptcy proceedings.
The announcement of a new deadline by the local regulator adds another twist to the FTX debacle. Initially, the firm was poised to resume withdrawals this month. Instead, it cited the assets return as a time and resource-intensive process.
The new development will enable FTX-Japan to restore its withdrawal functions since they were suspended following the FTX fallout.
The race to the March deadline leaves FTX with a short-live operation in Japan that started in June 2022 following its takeover of Liquid exchange in February.