ASIC Cancels FTX Australia License
The Australian Securities and Investments Commission (ASIC) has canceled the license of FTX Australia, as revealed in a press release published on July 19, 2023. With its Australian Financial Services (AFS) license revoked, FTX Australia will no longer be permitted to operate as a cryptocurrency exchange. The cancellation came into effect on July 14, 2023.
Until July 12, 2024, FTX Australia can still offer limited financial services, but only those that “relate to the termination of existing derivatives with clients”.
FTX Australia in Transition
Despite its license revocation, FTX Australia can still work towards compensating its customers, approximately 30,000 in total. The exchange also previously provided services to 132 local companies.
Australia Tightens its Grip on Crypto Exchanges
In the wake of FTX’s bankruptcy, Australia has adopted a much stricter approach towards cryptocurrency exchanges. On July 17, the country also prohibited major Australian banks from making payments to Binance, another major global crypto exchange. The Australian offices of Binance have also been raided as part of an ongoing investigation.
The Binance probe primarily focuses on the exchange’s derivatives offerings and the classification of its clients. This is part of a larger national effort by Australia to regulate the crypto industry more rigorously.
Cryptocurrency Remains Popular in Australia
Despite regulatory pressures, cryptocurrency remains popular in Australia. According to recent reports, the country leads the world in cryptocurrency adoption. The intensified scrutiny of crypto exchanges by ASIC, however, signals a cautious approach by regulators towards this emerging industry.
ASIC’s History with FTX Australia
This is not the first time ASIC has taken action against FTX Australia. The regulatory body previously suspended the license of the crypto exchange until May 2023, later extending the suspension until July 24, 2023. The recent cancellation of the license is a more definitive indictment of the exchange, signalling ASIC’s tightening grip on the cryptocurrency sector.
