Australia's financial services regulator has finally canceled the financial license of FTX Australia, the local subsidiary of the bankrupt crypto exchange, effective July 14.
On July 19, the Australian Securities and Investments Commission (ASIC) Announced the cancellation, before noting that FTX Australia will still be able to provide limited financial services while it concludes its dealings with clients until July 12 next year.
It would still be required to make arrangements to compensate customers until then, the regulator said. FTX Australia had around 30,000 retail clients and served 132 local businesses.
In November 2022, Discontinued ASIC FTX Australia's Australian Financial Services (AFS) license which allowed it to create derivatives and currency contracts for local clients.
ASIC has canceled the Australian financial services license held by FTX Australia https://t.co/Gsmsg9XcYj
โ ASIC Media (@asicmedia) July 19, 2023
The suspension came just days after the FTX filed for bankruptcy on November 11, 2022.
On the same day as FTX's bankruptcy, volunteer administrators from Sydney-based investment and advisory firm KordaMentha were appointed to assist in the restructuring of FTX Australia and a subsidiary, FTX Express.
Related: BlockFi CEO Ignored Risks of FTX and Alameda Exposure, Contributing to Collapse: Court Filing
In a report to a US bankruptcy court last month, the head of restructuring for FTX's global entity said it had recovered about $7 billion in liquid assets, but an estimated $8.7 billion total in client assets were allegedly misappropriated.
is reported FTX could be relaunched as an entirely new exchange, with its restructuring team holding discussions with parties potentially interested in financially backing such a reset.
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