Australia’s financial regulator revokes the license of the local unit of FTX

The Australian financial services regulator has finally revoked the financial license of FTX Australia, the local subsidiary of bankrupt crypto exchange – effective July 14.

On 19 July, the Australian Securities and Investments Commission (ASIC) announced Prior to the cancellation, it went on to note that FTX Australia will still be permitted to provide limited financial services while it ceases to deal with clients by July 12 next year.

The regulator said it would be bound to make arrangements for compensating customers till that time. FTX Australia had approximately 30,000 retail customers and served 132 local companies.

In November 2022, ASIC suspended FTX Australia’s Australian Financial Services (AFS) license, which allowed it to make derivatives and foreign exchange contracts for local clients.

ASIC revokes Australian financial services license held by FTX Australia https://t.co/Gsmsg9XcYj

– ASIC Media (@asicmedia) 19 July 2023

The suspension comes just days after Bahamian-based FTX filed for bankruptcy on November 11, 2022.

On the same day as FTX’s bankruptcy, voluntary administrators from Sydney-based investment and advisory firm CordaMentha were appointed to assist with the reorganization of FTX Australia and a subsidiary, FTX Express.

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In a report to the United States bankruptcy court last month, the restructuring head of FTX’s global unit said it had recovered about $7 billion in liquidated assets, but estimated that a total of $8.7 billion worth of client assets were allegedly liquidated. was misused.

It has been reported that FTX may relaunch as an entirely new exchange, with its restructuring team in talks with parties potentially interested in financially backing such a reboot.

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