The Alabama Securities Commission (ASC) announced last week it suspended the money transmission license previously granted to West Realm Shires Services Inc., also known as FTX US, for its failure to meet the licensing requirements set forth in Alabama's Monetary Transmission Act.
According to an ASC press release, the suspension of FTX US's license follows several issues with the company, including a bankruptcy filing in November, several changes in officers, executives, and other management, and a failure to adhere to the Alabama bond requirement of the Alabama Monetary Transmission Act.
The suspension shall remain in place until such time as FTX US provides evidence satisfactory to ASC that it meets the minimum licensing requirements and passes an examination conducted by ASC, according to the commission.
"Crypto is the wild west of financial markets," Amanda Senn, ASC Chief Deputy Director, said in a statement. "It is new territory with very little protection. Anyone considering investing in crypto should contact the ASC to obtain the latest information on these volatile and risky securities transactions."
U.S. Sen. Tommy Tuberville (R-Auburn) said in December that Congress should pass regulations on cryptocurrencies after the recent collapse of the large cryptocurrency exchange FTX sent shockwaves through the industry.
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