Japan regulators postponed the decision to cease FTX Japan operations for 3 months due to no refund to creditors.
Crypto exchange FTX started an active period in global finance after its bankruptcy. The bankruptcy event, which the crypto industry has taken a hit, has also mobilized the country’s regulators. Seven class-action lawsuits have been filed against former FTX CEO Sam Bankman-Fried. In addition, FTX was legally scrutinized. On the other hand, the parent company’s subsidiaries are also struggling with problems. In particular, the Japan arm of FTX is looking for ways to return assets to its customers in the country. In the midst of all these processes, the Japan regulator made a new decision regarding FTX’s Japan operation.
FTX Japan Spends Overtime on Withdrawal Issues
FTX Japan, a subsidiary of cryptocurrency exchange FTX, has received approval from a local regulator by next year. The Japanese arm of the exchange will be able to continue to resolve issues with withdrawals until March 9.
Kanto Local Finance Bureau, a local financial regulator under the Ministry of Finance of Japan, made a new statement about FTX Japan operations. The bureau reports that it has delayed the suspension of FTX Japan for 3 months.
According to the statement, this postponement requested by the stock market arm covers withdrawal problems. FTX’s Japan arm was unable to return assets to creditors. In addition, the regulator considered the trading system of the Japan branch of FTX as dysfunctional.
On the other hand, a statement on the subject came from the Japan branch of FTX. The exchange stated that it is not possible to quickly return customer funds.
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