Australia's Securities Regulator Cancels License Of FTX's Local Arm

The Australian Securities & Investments Commission (ASIC) has revoked the license of FTX’s Australian subsidiary, a cryptocurrency exchange offering services for Bitcoin BTC/USD, Ethereum ETH/USD, and other cryptocurrencies. The cancellation will take effect on July 14, reported Reuters

Background: FTX, headquartered in the Bahamas, was once a star of the crypto industry with a $32 billion valuation in January 2023. However, it filed for U.S. bankruptcy protection in November, stating it was unable to fully repay customers who had deposited funds on its exchange.

FTX founder Sam Bankman-Fried is currently facing a criminal lawsuit by the U.S. government for alleged fraud, to which he has pleaded not guilty.

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What’s Next: Despite the license cancellation, FTX Australia can continue to provide limited financial services for terminating existing derivatives with clients until July 12, 2024, according to the regulator.

The cancellation does not affect FTX Australia’s requirements to continue as a member of the Australian Financial Complaints Authority and to have arrangements for compensating retail clients.

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