Australian Finance regulators are working on the bankrupt FTX exchange to protect users. In the latest development, ASIC has revoked the AFS license of FTX Australia until May 15, 2023.
The collapse of FTX created a ripple effect across the crypto industry, affecting countless individuals, groups and platforms. There is also a growing possibility of the respective firms declaring bankruptcy. This may give way to various lawsuits and legal actions against former FTX CEO Sam Bankman-Fried.
But one thing’s for sure – lawmakers around the world are going to intervene. Whether that be in the FTX headquarters in the US, Australia, or even the Bahamas.
FTX faces the Australian heat
The Australian Securities and Investments Commission (ASIC) has suspended the Australian financial services license of FTX Australia Pty Ltd until May 15, 2023. The announcement comes on 16 November, after ASIC confirmed it on its official website after the exchange was placed on ‘voluntary’ status. Administration.’
Prior to the suspension, the exchange will have a few days to complete certain financial services, including providing general advice relating to derivatives and foreign exchange contracts, market making and general advice to retail and wholesale customers.
Regulators added:
“Until 19 December 2022, FTX Australia may continue to provide limited financial services relating to the expiry of existing derivatives with customers.”
But again, regulatory watchdogs will be closely monitoring the situation to avoid further crashes.
30,000 users affected
The collapse of FTX was clearly heard in Australia.
At least 30,000 Australian investors and 132 companies were left in limbo as local FTX users were forced out of their accounts after the cryptocurrency platform went bankrupt.
To reassure affected users, ‘KordaMentha has been approved by FTX Australia and its subsidiary FTX Express Pty Ltd. was appointed as the voluntary administrator of
Scott Langdon, representing the Sydney-based investment and advisory firm, said:
“CordMentha is now under the control of both FTX Express and FTX Australia. We are working closely with the directors to confirm the status quo and will report to all stakeholders. We appreciate the uncertainty created for FTX customers and all Will report to customers as an urgency.
Overall, it has been a short stint for FTX, which first set foot in Australia on March 20 this year.
a worldwide concern
FTX faced significant backlash not only in Australia but also in regions around the world. Namely, Japan and the Bahamas.
As BeInCrypto reports, Japanese authorities, the Financial Services Agency (FSA), took administrative action against the Japanese entity of FTX. Meanwhile, the Bahamas, home to the FTX headquarters, sealed assets of the exchange and those associated with “related parties”.
It won’t take long for US regulators, including the SEC and Department of Justice, to jump in with potentially onerous regulations.
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