The corporate regulator has suspended the AFSL of crypto exchange FTX Australia until 15 May 2023.

The firm was placed into voluntary administration on 11 November and can continue to provide limited financial services that relate to the termination of existing derivatives with clients until 19 December 2022.

Prior to the suspension, FTX Australia’s licence permitted it to deal in, make a market for and provide general advice relating to derivatives and foreign exchange contracts to retail and wholesale clients.

Crypto exchange Binance pulled out of an acquisition of the global arm of FTX last week after a review of the company’s finances.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition [of FTX],” Binance said in a statement.

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”

In a media release ASIC said it was monitoring this situation closely and speaking regularly with international regulators and the external administrators.

“ASIC encourages clients of FTX Australia to carefully monitor the situation and look out for updates by the FTX Group, as well as from FTX Australia’s administrators on the KordaMentha website,” the regulator said.

On 11 November 2022 KordaMentha was appointed as voluntary administrators of FTX Australia and its subsidiary FTX Express, which operates a digital currency exchange that is not regulated by ASIC.

On the same day, FTX Trading Limited, West Realm Shires Services Inc (trading as FTX US) and certain other affiliated companies commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code. FTX Trading Limited became the ultimate holding company of FTX Australia on 23 September 2021.