coinedition.com
The asset regulatory agency of Australia has taken decisive action against the local branch of the once-prominent U.S. crypto exchange FTX. Specifically, it announced the cancellation of FTX’s license, which took effect last Monday, July 4.
However, the regulator has allowed some breathing room for the troubled exchange. Until July 12, 2024, FTX Australia can provide limited financial services to wrap up existing derivative contracts with its clients.
Despite the license cancellation, certain obligations remain intact for FTX Australia. The company is still required to be a member of the Australian Financial Complaints Authority, and arrangements for compensating retail clients must be upheld, regardless of the upheaval the exchange is currently facing.
Previously in November 2022, the Australian Securities and Investments Commission (ASIC) took action against FTX, temporarily suspending its license until May 2023. This move effectively stripped FTX of its authorization to conduct derivative and foreign exchange contracts for retail and wholesale clients.
FTX, which once stood as a shining star in the crypto industry with a staggering valuation of $32 billion, saw its fortunes crumble. It sought refuge under the shelter of U.S. bankruptcy protection, citing its inability to fully reimburse customers who had entrusted their funds to the platform.
Since then, the crypto industry has been engulfed in intense regulatory scrutiny. As the storm rages on, FTX’s founder, Sam Bankman-Fried, faces more formidable challenges. The U.S. government has leveled a criminal lawsuit against him, accusing him of engaging in fraudulent activities. Meanwhile, Bankman-Fried has denied these allegations, maintaining his innocence and pleading not guilty.
Recently, Coin Edition reported that the FTX is considering restarting its international arm FTX.com, seeking interested parties to invest.