Bahamas-headquartered FTX, once a star of the crypto
industry with a $32 billion valuation in
January 2023, filed for U.S. bankruptcy protection last November, saying it was
unable to completely repay customers who had deposited funds on its exchange.
The industry has since been reeling amid the scrutiny of
global regulators, while FTX founder Sam Bankman-Fried faces a criminal lawsuit
by the U.S. government for alleged fraud. He denies the allegations and has
pleaded not guilty.
The Australian Securities & Investments Commission
(ASIC) had last November suspended the license until May, taking back FTX's
permit to deal in derivative and foreign exchange contracts to retail and
wholesale clients.
FTX Australia can continue to provide limited financial
services for terminating existing derivatives with clients until July 12, 2024,
the regulator said on Wednesday.
The license cancellation has no effect on requirements for
FTX Australia to continue as a member of Australian Financial Complaints
Authority, and to have arrangements for compensating retail clients, it added.
FTX did not immediately respond to a Reuters request for
comment.
© Reuters