ASIC has revoked the license of the Australian arm of FTX
ASIC has revoked the license of the Australian arm of FTX
The Australian Securities and Investments Commission (ASIC) announced on July 19 the revocation of the license of the Australian division of cryptocurrency exchange FTX, which took effect on July 14.
The bankrupt FTX exchange, which is based in the Bahamas, filed for bankruptcy in November 2022. It said it was unable to make full payments to clients who had deposited funds on the platform.
The collapse of the crypto exchange led to major problems in the industry. Since then, cryptocurrency companies have come under scrutiny from global regulators, and FTX CEO Sam Bankman has been prosecuted in the U.S. for mishandling client funds. He has not pleaded guilty and denies all charges.
In November 2022, the Australian regulator suspended FTX's license until May 2023 and revoked the exchange's access to retail and wholesale derivatives and foreign exchange contracts.
ASIC said in a statement that FTX Australia will be able to provide limited financial services to users until July 12, 2024, involving the termination of existing contracts.
It is also reported that the license revocation does not remove the requirements for FTX Australia, as a member of the Australian Financial Complaints Authority, to pay affected clients and develop compensation mechanisms.
FTX has not commented on ASIC's statement.
We have previously written that the CBDC project in China is gaining momentum.
