ASIC Cancels FTX Australia’s Financial License

The Australian Securities and Investments Commission (ASIC) has officially revoked FTX Australia’s financial license. The parent company, FTX, filed for bankruptcy prompting the regulatory body to temporarily revoke the license. Following the collapse of the cryptocurrency exchange, which sent shockwaves throughout the country’s financial markets, ASIC has taken a decisive step.

While FTX Australia is winding up its business with customers up until July 12 of next year, the company will be granted permission to continue providing some financial services.

According to what the regulatory body said, it would still be required to make arrangements for compensating customers until that time. 

FTX Australia has had its financial license revoked by the Australian Securities and Investments Commission (ASIC) after an extensive investigation into the company’s bankruptcy. The regulatory body for the financial industry concluded that the exchange had breached its contractual obligations to its customers, resulting in massive financial losses and endangering the stability of the financial system in the region. 

This license revocation was necessary to safeguard investors, promote openness and accountability in Australia’s financial system, and meet all applicable legal requirements.

In November, the Australian Securities and Investments Commission (ASIC) took action to suspend FTX Australia’s license to provide Australian Financial Services (AFS), which had enabled the company to generate derivatives and foreign exchange contracts for local customers. They have eventually cancelled the AFS License of FTX Australia.

Read also: Spotlight on the growing crypto market in the Middle East and North Africa

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