The Australian arm of FTX has seen its license canceled by the Australian Securities and Investments Commission (ASIC). It can nonetheless work on compensating victims, which quantity roughly 30,000.
The Australian Securities and Investments Commission (ASIC) has canceled the license of FTX Australia, as revealed in a press launch printed on July 19. With the Australian Financial Services (AFS) license revoked, the Australian unit of FTX will likely be unable to function as an alternate.
ASIC Cancels FTX Australia License
The cancellation was efficient from July 14, 2023. Until July 12, 2024, FTX Australia should present restricted monetary providers “that relate to the termination of present derivatives with purchasers.”
The alternate should work in direction of compensating its prospects, which quantity round 30,000 in Australia. It additionally supplied providers to 132 native firms.
Australia has been taking a a lot stricter stance in direction of crypto exchanges following the chapter of FTX. On July 17, it additionally banned main Australian banks from making funds to Binance. The Australian workplaces of Binance have additionally been searched as a part of an ongoing probe.
The probe is an element of a bigger effort by Australia to control the crypto business. The Binance probe has to do with the alternate’s derivatives choices, primarily specializing in the classification of purchasers.
However, in keeping with one report, crypto is well-liked in Australia, main the world on this regard.
ASIC Taking Strict Stance on Crypto Exchanges
ASIC previously suspended the license of FTX Australia till May 2023, which was later prolonged till July 24, 2023. The current revocation is a extra definitive indictment of the alternate.
The fallout of the FTX collapse had led Australia’s parliamentary committee to suggest nearer scrutiny of economic licenses. It additionally requires an audit of present license holders. ASIC is engaged on acquiring extra employees to deal with these new priorities, like different companies the world over.
Meanwhile, there have been a number of developments in addition to FTX Australia having its license canceled.
One main revelation is the allegation by FTX collectors that BlockFi CEO Zac Prince was aware of FTX’s troubled steadiness sheet earlier than the collapse.
FTX’s former Chief Operating Officer, Zhe Wang, has additionally made a transfer away from the alternate. She now works on the crypto enterprise capital agency Sino Global Capital.
Arkham Intelligence’s Intel Exchange now has a bounty of 100,000 Arkham (ARKM) tokens for anybody who can uncover the identification of whoever siphoned lots of of thousands and thousands from FTX in November 2022.
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