FTX Continues Global Expansion, Creates Unit in Australia

Cryptocurrency exchange FTX has continued its recent global expansion streak by establishing a new division in Australia.

• FTX Australia will offer exchange and over-the-counter (OTC) products and services, including derivatives, the firm announced on Monday.
• The Australian government announced its intention to establish a "world-leading" regulatory framework to bring crypto "out of the shadows" at the end of the last year.
• Firms that buy and sell crypto will have to be licensed to offer protection to users, Treasurer Josh Frydenberg said. The government is working on a licensing plan for exchanges.
• The Australian government is also seeking crypto industry feedback on regulation via the Digital Services' Act, Blockworks reported.
• The expansion comes weeks after the exchange established FTX Europe to offer its services across the European Economic Area (EEA) via an unidentified investment firm. Last week, the new European division became the first firm to receive a license to operate a crypto exchange and trading house in Dubai.
• FTX also expanded into the African market this month, linking with Nairobi, Kenya-based fintech firm AZA Finance, which claims to have started the continent's first digital currency exchange.
• The European and Australian divisions will be aiming to emulate the success of their American equivalent, which launched in 2020 and now has around 1.2 million users. In January, FTX US was valued at $8 billion following a $400 million funding round.
• Its Bahamas-based parent company now boasts a $32 billion valuation after its own $400 million funding round around the same time.

Read more: Commonwealth Bank First in Australia to Offer Crypto Services