FTX Australia’s License Cancelled by Regulators


As per the recent post, the Australian Securities and Investments Commission terminated the financial license of the bankrupt cryptocurrency exchange, FTX Australia, which was a subsidiary of FTX in Australia.

FTX Australia’s License is now Canceled

The announcement of which cancellation that actually was put into effect on July 14, is made public on July 19. However, the Australian unit of the crypto exchange will continue to be able to carry out limited financial services to customers up until July 12 of the coming year, which is when it will be compelled to close all of its activities. 

30 Thousand Customers Affected

The government agency stated that it would nevertheless be necessary to put forward plans to make up for the client’s loss until that period of time. Notably, the Australian entity of FTX has approximately thirty thousand customers at retail and has also handled 132 local businesses. 

$7 Billion in Assets

Restructuring director of FTX’s global business stated in a filing to a US bankruptcy court last month that it obtained about $7 billion in cash assets but assessed that a total of $8.7 billion in client funds were misused.

Recall that on November 11, 2022, the Bahamas-based FTX declared bankruptcy, shortly after that ASIC revoked FTX Australia’s Australian Financial Services (AFS) license, which it used for generating derivatives and contracts for foreign exchange to provide its local clients.

The Australian financial sector regulation is currently in high gear, as the country’s Treasury Assistant Secretary recently detailed its token mapping planning. Additionally, officials in Australia have searched the offices of the leading business, Binance, which is based in Australia.

FTX Set to Make a Return

At the end of last month, John Ray, the current appointed FTX chief who was hired to take care of the harm done after FTX collapsed and SBF resigned, claimed that the business had begun the process of contacting potential collaborators for the return of the FTX.com exchange. Previously, at the beginning of the year, the new CEO of the bankrupt bitcoin exchange talked about relaunching the company.

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