The FTX exchange’s subsidiary in Japan has been given an extension of three months to cease operations in the country. The Kanto Local Finance Bureau announced the extension on December 9. The firm’s new deadline is March 9, 2023.
The reason for the approval of the extension is that the crypto assets in the firm’s custody have yet to be returned to their owners.
According to the Finance Bureau, the company’s trading system is still out of function and cannot process any crypto-asset transactions. FTX Japan also issued a statement regarding the development. The company stated that it was moving forward with the business improvement plan at hand and apologized to customers for the inconvenience caused, noting that refunding the assets would take some time.
“In addition, we will make a company-wide effort to thoroughly comply with relevant laws and regulations and further strengthen our management system in an effort to regain the trust of our customers,” they added.
The company started operations in June 2022 after acquiring Liquid Group, a Japanese crypto firm. This expansion was intended to serve the Japanese market.
The parent institution, FTX, filed for Chapter 11 bankruptcy last month and is under investigation by the United States government. FTX Japan had earlier drafted a plan to resume withdrawals, implement security audits, and secure processes to enable the smooth delivery of the services.
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