Regulator cancels license of FTX’s Australian business
2023.07.18 22:56
© Reuters. FILE PHOTO: Representations of cryptocurrencies are seen in front of displayed words “Cryptocurrency market” in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/
(Reuters) – Australia’s securities regulator said on Wednesday it had cancelled the license of the local arm of collapsed U.S. cryptocurrency exchange FTX, effective from July 14.
Last November, the Australian Securities & Investments Commission (ASIC) had suspended the license until May, taking back its permit to deal in derivative and foreign exchange contracts to retail and wholesale clients.
Bahamas-headquartered FTX, once a rising star of the crypto industry with a $32 billion valuation in January 2023, filed for U.S. bankruptcy protection in November, saying it was unable to completely repay customers who had deposited funds on its exchange.
The terms of the cancellation include provisions that until the end of July 12, 2024 FTX Australia may provide limited financial services that relate to the termination of existing derivatives with clients, the ASIC said.
FTX did not immediately respond to a Reuters request for comment.
