Markets

FTX Australia loses license amid industry-wide crackdown

The Australian arm of FTX has seen its license revoked by the Australian Securities and Investments Commission (ASIC). It can still work to compensate the victims, who number about 30,000.

The Australian Securities and Investments Commission (ASIC) has revoked FTX Australia’s license, as revealed in a press release published July 19. With the revocation of the Australian Financial Services (AFS) license, the Australian unit of FTX will not be able to operate as follows. exchange.

ASIC revokes FTX Australia’s license

the cancellation From July 14, 2023. Until July 12, 2024, FTX Australia may continue to provide limited financial services “in connection with the termination of existing derivatives with clients.”

The exchange may still be working to compensate its customers, who number around 30,000 in Australia. It also provided services to 132 local companies.

Australia is taking a tougher stance on cryptocurrency exchanges following the bankruptcy of FTX. On July 17, it also banned major Australian banks from making payments to Binance. Binance’s Australian offices have also been searched as part of an ongoing investigation.

The probe is part of a larger effort by Australia to regulate the crypto industry. The Binance test concerned derivatives offerings on the exchange, with the main focus on customer ratings.

However, according to one report, cryptocurrencies are popular in Australia, leading the world in this regard.

ASIC takes a tough stance on cryptocurrency exchanges

ASIC previously It suspended FTX Australia’s license until May 2023, which was later extended until July 24, 2023. The latest revocation is a more specific indictment of the exchange.

The fallout from the collapse of FTX led the Australian Parliamentary Committee to recommend a closer scrutiny of financial licenses. It also calls for a review of existing license holders. ASIC is working to get more staff to handle these new priorities, like other agencies around the world.

Meanwhile, there have been several developments besides the revocation of FTX Australia’s license.

One of the major revelations is the claim by FTX creditors that BlockFi CEO Zac Prince was aware of FTX’s troubled balance sheet before the crash.

Former COO of FTX Corporation, Zhi Wang, also moved away from the stock exchange. She now works for crypto venture capital firm Sino Global Capital.

Arkham Intelligence’s Intel Exchange now has a file Reward 100,000 Arkham Tokens (ARKM) to anyone who can discover the identity of whoever took hundreds of millions of FTX in November 2022.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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