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Australian Regulator Permanently Withholds FTX Business License

Published 19/07/2023, 14:19
Australian Regulator Permanently Withholds FTX Business License

  • Australia’s regulator cancels FTX’s crypto exchange license.
  • FTX Australia is allowed to provide limited financial services until July 12, 2024.
  • The exchange is still required to be a member of the Australian Financial Complaints Authority.

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. T…

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The post Australian Regulator Permanently Withholds FTX Business License appeared first on Coin Edition.

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