Japan’s Kanto Local Finance Bureau has extended the suspension of FTX Japan, the local subsidiary of the beleaguered cryptocurrency exchange, FTX, to March 9, 2023, the Japanese Financial Services Agency announced on Friday.
Finance Magnates reported last month that the local Asian regulator ordered the suspension of operations of the local subsidiary until December 9 (today). This followed the sudden collapse of the Bahamas-headquartered cryptocurrency exchange over the alleged mishandling of customer funds.
However, the domestic watchdog noted that it could reverse the suspension if a system to properly conduct the overall operations of the subsidiary’s digital asset exchange business is developed and subjected to its confirmation.
Possible Withdrawal Resumption
Meanwhile, the Kanto Local Finance Bureau in November tasked FTX Japan with submitting a business improvement plan by November 16. In the new administrative action, the regulator noted that the order remains in place.
Furthermore, the regulator said it was working towards resuming withdrawal services on FTX Japan but cannot give a specific date when the service could be reopened. The market supervisor added that it will continue to suspend new transactions for users.
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“At the same time, it is necessary to take all possible measures to ensure that the Company’s [FTX Japan Co. Limited) assets do not flow out to overseas affiliates, etc. and that the interests of users are not harmed,” the financial markets supervisor explained.
Meanwhile, in early November, the FTX Group filed for bankruptcy protection in the United States and included FTX.com, the exchange's US subsidiary, FTX.US, Hong Kong-based subsidiary Alameda Research Limited, and “approximately 130 additional affiliated companies.” FTX Japan is one of these affiliates.
Furthermore, FTX is undergoing civil and criminal investigations in the Bahamas and is reportedly undergoing a similar action in the United States. The assets of the embattled cryptocurrency exchange have been ceased by the Securities Commission of the Bahamas. In addition, regulators in Australia and Cyprus have suspended the local licenses of the once-beloved crypto exchange.
