ASIC Revokes FTX Australia’s License

The Australian financial services regulator has ultimately revoked the financial license of FTX Australia, the local subsidiary of the bankrupt cryptocurrency exchange.

The Australian Securities and Investments Commission announced the cancellation on July 19, and it went into effect on July 14.

FTX Australia will be permitted to provide limited financial services until July 12 of next year as it winds down its client relationships.

Until then, it would be required to make arrangements for client compensation, according to the regulator.

FTX Australia served approximately 132 local businesses and approximately 30,000 retail customers.

In November, the Australian Securities and Investments Commission (ASIC) revoked FTX Australia’s Australian Financial Services (AFS) license, which had allowed it to construct derivatives and foreign exchange contracts for local clients.

The suspension occurred just days after FTX, domiciled in the Bahamas, filed for bankruptcy on November 11, 2022.

The same day that FTX declared insolvency, voluntary administrators from the Sydney-based investment and advisory firm KordaMentha were appointed to help restructure FTX Australia and FTX Express.

Last month, the restructuring chief for FTX’s global entity reported to a United States bankruptcy court that the company had recovered approximately $7 billion in liquid assets but estimated that $8.7 billion worth of customer assets were allegedly misappropriated.

According to reports, FTX may relaunch as an entirely new exchange, with its restructuring team currently in discussions with parties who may be interested in financially supporting such a relaunch.