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(Reuters) -Australia’s securities regulator mentioned on Wednesday it had cancelled the license of the native arm of collapsed U.S. cryptocurrency trade FTX, efficient from July 14.
Bahamas-headquartered FTX, as soon as a star of the crypto business with a $32 billion valuation in January 2023, filed for U.S. chapter safety final November, saying it was unable to utterly repay prospects who had deposited funds on its trade.
The business has since been reeling amid the scrutiny of world regulators, whereas FTX founder Sam Bankman-Fried faces a felony lawsuit by the U.S. authorities for alleged fraud. He denies the allegations and has pleaded not responsible.
The Australian Securities & Investments Fee (ASIC) had final November suspended the license till Might, taking again FTX’s allow to deal in spinoff and international trade contracts to retail and wholesale shoppers.
FTX Australia can proceed to offer restricted monetary companies for terminating current derivatives with shoppers till July 12, 2024, the regulator mentioned on Wednesday.
The license cancellation has no impact on necessities for FTX Australia to proceed as a member of Australian Monetary Complaints Authority, and to have preparations for compensating retail shoppers, it added.
FTX didn’t instantly reply to a Reuters request for remark.