FTX filed for bankruptcy, Australian company's financial services licence suspended

CTOnews.com November 16 news, according to Reuters, the Australian securities regulator said today that it has suspended the license of the local branch of FTX until mid-May next year. This adds to the plight of FTX, a cryptocurrency exchange that is facing intense scrutiny from global regulators.

The Australian Securities and Investment Commission (ASIC) said in a statement that FTX Australia's financial services licence would be suspended until mid-May next year to withdraw its permits to trade derivatives and foreign exchange contracts with retail and wholesale clients.

In January, FTX was valued at as much as $32 billion (about 226.24 billion yuan). CTOnews.com learned that on November 11, FTX announced that bankruptcy proceedings had been initiated in the United States. FTX said in a statement that CEO Sam Bankman-Fried has resigned but will remain at the company to assist in an orderly transition. In addition, John J. Ray III has been appointed as FTX's new CEO.

FTX's subsidiaries around the world face tighter regulatory scrutiny. The Securities and Exchange Commission (SEC) and other regulators are investigating FTX, while FTX's Japanese subsidiary will enter "shut down only" mode under the guidance of Japanese financial services institutions and others.

The Australian Securities and Investment Commission said: "ASIC is closely monitoring the situation and communicates regularly with international regulators and external regulators." The regulator added that FTX Australia could continue to provide limited financial services for terminating existing derivatives with clients until December 19.