The regulator explained: until July 12, 2024, FTX Australia will still be able to provide a limited range of financial services related to the termination of existing derivatives products for customers. Before that deadline, the local FTX unit will be required to make arrangements to compensate victims. FTX Australia served around 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 derivatives products and foreign exchange contracts for local clients. This comes after Bahamas-based FTX declared bankruptcy.
In December, ASIC chairman Joseph Longo said crypto exchange FTX was issued a license without going through a full vetting process. Therefore, the official called for closing possible loopholes in the rules for obtaining licenses to avoid similar situations with other cryptocurrency companies.
According to media reports, FTX may restart. Its restructuring team is in talks with stakeholders. Investment firm Jefferies is exploring the possibility of buying FTX.