Hassan Maishera
TL;DR
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ASIC has cancelled the license issued to FTX’s local entity in Australia.
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The license was previously suspended following FTX’s collapse last year.
FTX Australia’s license gets cancelled
The Australian financial services regulator has cancelled the financial license issued to FTX Australia, the Australian arm of the now-bankrupt cryptocurrency exchange.
The Australian Securities and Investments Commission announced this latest development in a press release on Wednesday, July 19th. ASIC wrote that;
“ASIC has cancelled the Australian financial services (AFS) licence held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023.
The terms of the cancellation include provisions that, until the end of 12 July 2024:
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FTX Australia may provide limited financial services that relate to the termination of existing derivatives with clients; and
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The cancellation has no effect on the requirements for FTX Australia to continue as a member of the Australian Financial Complaints Authority, and to have arrangements for compensating retail clients.”
The regulatory agency added that FTX Australia would be allowed to provide limited financial services while it wraps up its dealings with clients until July 12, 2024.
ASIC further revealed that FTX Australia would be making arrangements for compensating clients until that time. The cryptocurrency exchange had around roughly 30,000 retail clients and serviced 132 local companies.
In November 2022, ASIC suspended FTX Australia’s Australian Financial Services (AFS) license, following the bankruptcy of the FTX crypto exchange. The Australian regulator also hired administrators from the Sydney-based investment and advisory firm KordaMentha to assist in restructuring FTX Australia and a subsidiary, FTX Express.
FTX is looking to relaunch as an entirely new cryptocurrency exchange. The restructuring team is currently in talks with parties that could be interested in providing financial backing to support the reboot.
