Crypto trade FTX has misplaced its Australian licence just a few days after it collapsed and filed for chapter.
The Australian Securities and Investments Commission (ASIC), introduced on Wednesday, November sixteenth, that it had suspended the licence issued to FTX Australia, the Australian arm of the FTX trade.
In its weblog submit, the ASIC stated;
“ASIC has suspended the Australian financial services licence of FTX Australia Pty Ltd (AFS licence 323193) until 15 May 2023 after it was placed into voluntary administration on 11 November 2022. Until 19 December 2022, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients.”
Prior to its suspension, FTX Australia’s AFS license allowed it to create a marketplace for derivatives and overseas trade contracts for Australian-based retail and institutional shoppers.
The suspension got here just a few days after John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha have been appointed as voluntary directors of FTX Australia and its subsidiary FTX Express Pty Ltd, which operates a digital forex trade that isn’t regulated by ASIC.
ASIC added that it’s monitoring this example intently and talking recurrently with worldwide regulators and exterior directors.
FTX presently dangers dropping its licence in Europe following the collapse of the cryptocurrency trade. Last week, Bloomberg reported that the Cyprus Securities and Exchange Commission (CySEC) may seize FTX’s European licence.
The licence allowed FTX to function in Europe and supply its companies to prospects all around the continent.
These newest developments started to unfold after FTX collapsed and filed for chapter final week. The cryptocurrency trade was reportedly utilizing prospects’ funds to fund Alameda Research, its sister hedge fund.
The transfer was towards FTX’s phrases and circumstances and sparked a sequence of occasions that noticed the as soon as mighty crypto trade crumble to its knees. The occasions that unfolded additionally noticed CEO Sam Bankman-Fried resign from his function.