July 19 (Reuters) – The Australian Securities Commission said on Wednesday it had revoked the license of the local arm of collapsed US cryptocurrency exchange FTX, effective July 14.
Bahamas-based FTX, once a star in the crypto industry with a valuation of $32 billion in January 2023, filed for bankruptcy protection in the US last November, saying it was unable to fully repay customers who deposited funds on the exchange.
Since then, the industry has been reeling under the scrutiny of global regulators, while FTX founder Sam Bankman-Fried faces criminal action by the US government for alleged fraud. He denied these allegations and pleaded not guilty.
Last November, the Australian Securities and Investments Commission (ASIC) suspended the license until May, re-authorizing FTX to deal in derivatives and forex contracts for retail and wholesale clients.
The regulator said on Wednesday that FTX Australia can continue to offer limited financial services to terminate derivatives with existing customers until July 12, 2024.
It added that revocation of the license had no impact on requirements for FTX Australia to continue as a member of the Australian Financial Complaints Authority, and to have arrangements in place to compensate retail clients.
FTX did not immediately respond to a Reuters request for comment.
Additional reporting by Harish Sridharan in Bengaluru. Editing by Sherry Jacob Phillips
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