Securities Commission Cancels FTX Australia’s License

Australia’s securities regulator has canceled the licence of the section FTX entity, allowing it to execute lone constricted fiscal services. These volition beryllium related to the termination of derivatives with clients and arrangements to compensate retail customers.

ASIC Revokes Financial Services License of Crypto Exchange FTX Subsidiary

The Australian Securities and Investments Commission (ASIC) announced it had canceled the fiscal services licence of FTX Australia, a institution owned by the failed crypto speech FTX which filed for bankruptcy successful the United States past fall.

“ASIC has cancelled the Australian fiscal services (AFS) licence held by FTX Australia Pty Ltd (FTX Australia), effectual from 14 July 2023,” the regulatory assemblage said successful a press release published Thursday connected its website.

Under the cancellation terms, FTX Australia volition beryllium permitted to supply constricted fiscal services related to the termination of existing derivatives with clients until the extremity of July 12, 2024, the Commission noted and besides highlighted:

The cancellation has nary effect connected requirements for FTX Australia to proceed arsenic a subordinate of Australian Financial Complaints Authority, and to person arrangements for compensating retail clients.

The Bahamas-headquartered FTX, which was 1 of the world’s largest integer plus exchanges, sought Chapter 11 bankruptcy extortion successful the State of Delaware connected Nov. 11, 2022, amid liquidity issues. Its laminitis Sam Bankman-Fried was extradited to the U.S. wherever helium faces a suit for alleged fraud.

Also connected Nov. 11, Australian authorities appointed 3 voluntary administrators of FTX Australia and its subsidiary, FTX Express Pty Ltd which, according to the securities regulator, operates a integer currency speech not regulated by ASIC.

FTX Australia’s AFS licence was suspended by the Australian Securities and Investments Commission connected Nov. 14, 2022. The suspension, initially imposed until May 15, 2023, was aboriginal extended to July 24, 2023.

What are your thoughts connected ASIC’s determination to revoke the fiscal services licence of FTX’s Australian entity? Share them successful the comments conception below.