Because FTX Japan has not yet handed over the assets that were taken into custody to its creditors, the Japanese authorities have decided to extend the date on which the company would be suspended.

The relevant authorities in Japan have granted permission to the Japanese subsidiary of cryptocurrency exchange FTX, which is no longer in operation, to continue addressing issues with withdrawals until the following year. FTX was the first major cryptocurrency exchange to shut down.

The Japanese regulatory authority has made the decision to extend the date of suspension of FTX’s trading operations until March 9, 2023. This constitutes a three-month extension of the initial time limitation that was set.

The initial request to freeze any trade orders until December 9 came from the Japan Financial Services Agency (FSA) in mid-November. This request was sent to FTX Japan.

According to the notification, the Kanto Local Finance Office gave instructions to extend the deadline as FTX Japan has so far not handed over the assets that were in custody to their respective creditors.

The body that monitors the functioning of financial markets has emphasized that the FTX Japan trading system is not working yet.

In a subsequent blog post, FTX Japan confirmed the latest news by stating that the exchange is moving forward with a “business development plan” that the company had submitted to the Kanto Local Finance Office on November 16. According to FTX Japan, the exchange is now implementing the business development plan that the company submitted to the Kanto Local Finance Office on November 16.

The exchange said that the platform has been inoperable for some time, adding that it would not be possible to immediately refund client assets during this period. The inability to operate the platform has been going on for some time.

The notification came shortly after FTX Japan published a plan on December 1 to start processing withdrawals.

The exchange has already ensured that assets belonging to its clients would not be included in FTX’s bankruptcy proceedings.

Initially, the corporation anticipated that it would be ready to initiate withdrawals no later than the end of 2022.

FTX began operations in Japan in June 2022, as originally reported, following its acquisition of Japanese cryptocurrency exchange Liquid in February 2022.