The regulator clarified that until July 12, 2024, FTX Australia will continue to be able to provide a limited range of financial services related to the termination of existing derivatives products for customers. Until then, the local FTX office will be required to take action to compensate those affected. FTX Australia served approximately 30,000 retail customers and 132 local businesses.
In November, ASIC suspended the license for FTX Australia Financial Services (AFS), which allowed the crypto platform to create derivative products and foreign exchange contracts for local clients. This came after Bahamas-based FTX filed for bankruptcy.
In December, ASIC Chairman Joseph Longo stated that the FTX crypto exchange was granted a license without going through a full review. Therefore, the official urged to close possible loopholes in the rules for obtaining licenses in order to avoid similar situations with other crypto companies.
According to media reports, FTX may restart. Its restructuring team is in talks with stakeholders. The possibility of buying FTX is being studied by investment company Jefferies.
Source: Bits
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