(Reuters) -The Australian securities regulator said on Wednesday it has suspended the licence of the local arm of collapsed-crypto exchange FTX until mid-May next year, days after the local unit was placed under voluntary administration.
The Bahamas-headquartered FTX, once a rising star of the crypto industry with a $32 billion valuation as of January, filed for U.S. bankruptcy protection last week as it struggled to stave off collapse following a rush by traders to withdraw $6 billion from the platform in just 72 hours.
The Australian Securities & Investments Commission (ASIC) in a statement said FTX Australia’s financial services licence allowed it to deal in derivative and foreign exchange contracts to retail and wholesale clients, along with provide general advice.
“ASIC is monitoring this situation closely and speaking regularly with international regulators and the external administrators,” the regulator said.
FTX did not immediately respond to a Reuters request for comment on the suspension of its Australian unit’s licence.
The regulator also said that FTX Australia can continue to provide limited financial services for terminating existing derivatives with clients until Dec. 19.
(Reporting by Sameer Manekar in Bengaluru; Editing by Shailesh Kuber)