1 year ago
According to a statement released connected July 19, the Australian Securities and Investments Commission (ASIC) canceled the Australian Financial Services (AFS) licence held by FTX, a subsidiary operating successful Australia, connected July 14.
The licence cancelation does not interaction FTX Australia’s arrangements to compensate its retail clients and its continued Australian Financial Complaints Authority membership. The speech could besides supply constricted fiscal services for terminating existing derivatives with clients earlier July 12, 2024.
FTX Australia serviced 30,000 customers
Before its licence cancellation, FTX Australia serviced astir 30,000 customers, making it 1 of the largest crypto platforms successful the country.
Eight months earlier its collapse, successful March 2022, ASIC had already begun raising concerns astir FTX Australia’s operations. At the time, the regulator placed the speech nether “surveillance activity” based connected concerns that it side-stepped the scrutiny of issuing caller licenses.
The regulator would aboriginal suspend the exchange’s AFS licence erstwhile it entered into voluntary medication successful November.
Meanwhile, 2 entities are reportedly related to the bankrupt speech successful Australia, including FTX Australia. The 2 firms clasp astir $42 cardinal successful lawsuit funds.
Australia’s expanding crypto regularisation efforts
The licence cancellation of FTX Australia forms portion of the Australian government’s broader efforts to regulate the crypto manufacture increasingly.
In April, the ASIC conducted a compliance reappraisal of the fiscal services concern of Binance nether section laws and reportedly searched the platform’s bureau earlier this month. Binance had abruptly cancelled its derivatives licence with the regulator, citing compliance with section laws.
Meanwhile, respective Australian banks, including Westpac, National Australian Bank (NAB), and others, person lately been restricting payments to crypto exchanges arsenic portion of efforts to trim their lawsuit vulnerability to scams.
The banks described cryptocurrency scams arsenic 1 of the fastest-growing information threats successful the country.
The station ASIC cancels FTX Australia’s licence amid escalating crypto regulation appeared archetypal connected CryptoSlate.
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