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<p>The bankrupt crypto exchange FTX’s subsidiary in Australia has recently taken a hit from the financial regulator. The Australian regulator cancelled the financial license of FTX Australia.</p> 
<p>Reuters reported that the Australian Securities and Investments Commission (ASIC) announced the cancellation of FTX Australia’s license. The announcement from ASIC came on July 19; though it was in effect on July 14.&nbsp;</p> 
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   <p lang="en" dir="ltr">ASIC has cancelled the Australian financial services licence held by FTX Australia <a href="https://t.co/Gsmsg9XcYj" rel="noopener noreferrer nofollow">https://t.co/Gsmsg9XcYj</a></p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1681493561605234688?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 19, 2023</a> 
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<h2 class="wp-block-heading" id="strong-ftx-australia-can-offer-limited-financial-services-until-closure-strong"><strong>FTX Australia Can Offer Limited Financial Services Until Closure</strong></h2> 
<p>I<strong>n compliance with curre</strong>nt regulatory requirements, FTX Australia has been granted permission to continue offering limited financial services during the process of concluding its operations with customers until July 12 of the following year.&nbsp;</p> 
<p>This decision comes as the company ensures the appropriate closure of its dealings and maintains adherence to relevant guidelines.</p> 
<p>As per the regulator’s stipulations, FTX Australia remains obligated to make necessary provisions for compensating its clients until the designated date. The company’s clientele consists of approximately 30,000 retail customers, and it has catered to the needs of 132 local businesses in the region.</p> 
<p>The regulator’s decision aims to safeguard the interests of the affected parties while ensuring a fair and orderly resolution during the specified time frame.</p> 
<p>In November, FTX Australia experienced a suspension of its Australian Financial Services (AFS) license by ASIC. This license had authorized the company to offer derivative products and foreign exchange contracts to its local clientele.</p> 
<p>The regulatory action was taken as a measure to address any potential concerns and ensure compliance within the financial services sector. During the suspension period, FTX Australia’s ability to provide these specific financial services was put on hold until further resolution with the regulator.</p> 
<h2 class="wp-block-heading" id="strong-ftx-australia-s-license-was-cancelled-soon-after-november-11-strong"><strong>FTX Australia’s License Was Cancelled Soon After November 11</strong></h2> 
<p>Shortly after FTX, a Bahama-based company, filed for bankruptcy on November 11, 2022, the suspension of FTX Australia’s Australian Financial Services (AFS) license followed within a few days. The timing of these events suggests a potential correlation between the <a href="https://www.thecoinrepublic.com/2023/01/18/ftx-lost-415-million-in-crypto-hack-after-filing-bankruptcy/" rel="noopener noreferrer nofollow">bankruptcy filing</a> and the regulatory action taken by ASIC.&nbsp;</p> 
<p>The specific details surrounding FTX’s bankruptcy filing and its subsequent impact on FTX Australia’s licensing status may require further investigation and clarification.</p> 
<p>On the same day as FTX’s bankruptcy filing, voluntary administrators from KordaMentha, a Sydney-based investment and advisory firm, were appointed to oversee the restructuring process for both FTX Australia and its subsidiary, FTX Express.&nbsp;</p> 
<p>The appointment of voluntary administrators indicates a step taken to manage the financial situation of the companies and explore options for restructuring their operations in an orderly manner. Under the guidance of KordaMentha, the aim is to assess the financial situation, liabilities, and assets of FTX Australia and FTX Express while working towards a viable plan for their future.</p> 
<h2 class="wp-block-heading" id="strong-7-billion-recovered-in-restructuring-plan-strong"><strong>$7 Billion Recovered in Restructuring Plan</strong></h2> 
<p>According to a report submitted to a United States bankruptcy court last month, the restructuring chief overseeing FTX’s global entity revealed that approximately $7 Billion in liquid assets had been successfully recovered. However, the report also highlighted a concerning claim of alleged misappropriation, estimating that a total of $8.7 Billion worth of customer assets had been involved in the said misappropriation.</p> 
<p>These figures indicate an alarming discrepancy and raise serious concerns about the handling of customer funds within the company. The ongoing bankruptcy proceedings will likely investigate and address these allegations to determine the full extent of the financial situation and potential implications for affected customers.</p> 
<p>Reports suggest that FTX may be considering a complete re-launch as an entirely new exchange. The restructuring team overseeing the bankruptcy proceedings is said to be engaging in discussions with parties that might be interested in providing financial backing for this potential reboot.</p> 
<p>Such a move would involve starting afresh, potentially with new ownership and revised operational strategies. The talks with interested parties indicate a willingness to explore avenues for reviving the exchange in a restructured and financially supported manner. However, the final decision and outcome will depend on various factors, including the outcome of the bankruptcy proceedings and the level of interest from potential investors.</p>

FTX Australia Receives Financial Services License Cancellation

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Thecoinrepublic.com

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