according to statement The Australian Securities and Investments Commission (ASIC) announced on 19 July that it had revoked the Australian Financial Services (AFS) license held by its subsidiary FTX, which operates in Australia, on 14 July.
The revocation of this license will not affect FTX Australia’s arrangements for indemnification of retail customers or its continued membership in the Australian Financial Complaints Authority. The exchange may also offer limited financial services to terminate existing derivatives with customers by July 12, 2024.
FTX Australia serves 30,000 customers
Before its license was revoked, FTX Australia served approximately 30,000 customers, making it one of the largest cryptocurrency platforms in the country.
In March 2022, eight months before the bankruptcy, ASIC had already begun to raise concerns about FTX Australia’s operations. At the time, regulators put the exchange under “surveillance activity” based on concerns that the exchange was evading oversight for issuing new licenses.
The regulator then planned to suspend the exchange’s AFS license when it went into self-control in November.
Meanwhile, two entities, including FTX Australia, are reportedly linked to the Australian bankruptcy exchange. Both companies have about $42 million in customer funds.
Stepping up commitment to Australian cryptocurrency regulation
The revocation of FTX Australia’s license is part of a broader effort by the Australian government to increasingly regulate the cryptocurrency industry.
ASIC reportedly conducted a compliance review of Binance’s financial services business under local law in April and raided the platform’s offices earlier this month. Binance has abruptly revoked its derivatives license from regulators, citing compliance with local laws.
Meanwhile, several Australian banks, including Westpac and National Australian Bank (NAB), recently restricted payments to cryptocurrency exchanges in an effort to reduce customer fraud.
Bankers described cryptocurrency fraud as one of the fastest growing security threats in the country.
An article about ASIC revoking FTX Australia’s license against the backdrop of increasing cryptocurrency regulation first appeared on CryptoSlate.
