Securities Commission Cancels FTX Australia’s License

Australia’s securities regulator has canceled the license of the native FTX entity, permitting it to carry out solely restricted monetary companies. These can be associated to the termination of derivatives with shoppers and preparations to compensate retail prospects.

ASIC Revokes Financial Services License of Crypto Exchange FTX Subsidiary

The Australian Securities and Investments Commission (ASIC) introduced it had canceled the monetary companies license of FTX Australia, an organization owned by the failed crypto alternate FTX which filed for chapter within the United States final fall.

“ASIC has cancelled the Australian financial services (AFS) license held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023,” the regulatory physique stated in a press release revealed Thursday on its web site.

Under the cancellation phrases, FTX Australia can be permitted to offer restricted monetary companies associated to the termination of present derivatives with shoppers till the tip of July 12, 2024, the Commission famous and likewise highlighted:

The cancellation has no impact on necessities for FTX Australia to proceed as a member of Australian Financial Complaints Authority, and to have preparations for compensating retail shoppers.

The Bahamas-headquartered FTX, which was one of many world’s largest digital asset exchanges, sought Chapter 11 chapter safety within the State of Delaware on Nov. 11, 2022, amid liquidity points. Its founder Sam Bankman-Fried was extradited to the U.S. the place he faces a lawsuit for alleged fraud.

Also on Nov. 11, Australian authorities appointed three voluntary directors of FTX Australia and its subsidiary, FTX Express Pty Ltd which, in keeping with the securities regulator, operates a digital foreign money alternate not regulated by ASIC.

FTX Australia’s AFS license was suspended by the Australian Securities and Investments Commission on Nov. 14, 2022. The suspension, initially imposed till May 15, 2023, was later prolonged to July 24, 2023.

What are your ideas on ASIC’s determination to revoke the monetary companies license of FTX’s Australian entity? Share them within the feedback part under.