Australian Securities Regulators Resilient FTX Branch Licenses Until May 2023

Suana is an empty FTX office after being threatened with bankruptcy. (photo: Twitter @ftx_official)

JAKARTA - Australian securities regulators have suspended local FTX branch licenses until mid-May next year. The announcement on Wednesday, November 16 adds to the misery of the collapsing cryptocurrency exchange as it faces tighter global regulatory scrutiny.

The Australian Securities & Investment Commission (ASIC) said in a statement that Australia's FTX financial services licenses would be suspended until mid-May next year, as well as recalling permits to handle derivative contracts and foreign exchanges to retail and wholesale clients, along with providing general information on advice.

The Bahamas-based FTX, once a new star in the crypto industry with a fortune of US$32 billion in January, last week filed for US bankruptcy protection for fighting to prevent collapse following the attack by traders to withdraw US$6 billion (Rp92.8 trillion) from the platform in just 72 hours.

FTX branches around the world are also facing strict regulatory scrutiny. The US Securities and Exchange Commission together with other regulatory agencies are investigating FTX, while its branches in Japan will enter "only closed" mode following guidelines from state financial services institutions.

"ASIC is monitoring the situation closely and speaking regularly with international regulators and external administrators," an ASIC source said.

They added that FTX Australia could continue to provide limited financial services to stop existing derivatives with clients until December 19. FTX did not immediately respond to a request for comment from Reuters on the ASIC statement.