FTX Opens up Shop in Australia, despite Regulatory Actions

One of the world’s leading crypto exchanges, FTX, has announced its expansion plans and is set to start operations in Australia as the country prepares to regulate the crypto industry.

The third-largest crypto exchange has obtained an Australian Financial Services License and will be opening a branch in the country through a regulated subsidiary. 

FTX Australia to offer spot and derivatives-based crypto products.

Following reports from a Monday press release, the leading crypto exchange announced the launch of FTX Australia, a regulated domestic crypto exchange that offers full-suite products in the crypto derivatives and spot markets.

FTX CEO Sam Bankman-Fried revealed Monday during the country’s annual Blockchain Week conference that the new branch had obtained an Australian Financial Services License by acquiring an unnamed company that previously held the license. Speaking at the press conference, he said: 

“The establishment of FTX Australia should provide all our local clients with the confidence of trading on a registered and licensed platform. As in other jurisdictions within which we operate, significant resources have been allocated to proactively engage with local regulators.”

RELATED: FTX becomes the first licensed crypto exchange in Dubai

However, FTX’s move to Australia clashes with the government’s decision to overhaul its regulatory framework for digital assets and create a secure and friendly environment for domestic crypto businesses and consumers. 

Releasing a consultation paper on Monday, the Australian government asked the industry for feedback on its proposed licensing and custody requirements for crypto-asset secondary service providers.

“The Government is keen to harness the economic benefits from the technological innovations arising from the crypto ecosystem for Australia and create a local crypto ecosystem that consumers can trust,” said the paper.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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