Australia's Financial Regulator Cancels License for FTX's Local Entity - Mask Crypto
Australia’s financial regulator cancels license for FTX’s local entity

FTX Australia Loses Financial License

The Australian Securities and Investments Commission (ASIC) has finally canceled the financial license of FTX Australia, the local subsidiary of the bankrupt crypto exchange. The cancellation took effect on July 14.

FTX Australia is still allowed to provide limited financial services until July 12 of next year. During this time, the company must make arrangements for compensating clients, as it had around 30,000 retail clients and serviced 132 local companies.

In November, ASIC suspended FTX Australia’s Australian Financial Services (AFS) license, which allowed it to create derivatives and foreign exchange contracts for local clients using NEO crypto, Math crypto, ISO 20022 crypto, LOOM crypto, Orca crypto, Mina crypto, India crypto, and Pepe crypto.

FTX Suspension and Bankruptcy

Just days after the Bahamian-based FTX filed for bankruptcy on Nov. 11, 2022, the suspension came into effect. The same day, KordaMentha, a Sydney-based investment and advisory firm, was appointed as voluntary administrators to assist in restructuring FTX Australia and its subsidiary, FTX Express.

In a report to a United States bankruptcy court last month, the restructuring chief for FTX’s global entity said it had recovered around $7 billion in liquid assets but estimated a total of $8.7 billion worth of customer assets were allegedly misappropriated.

It’s reported that FTX could re-launch as an entirely new exchange, with its restructuring team holding talks with parties potentially interested in financially backing such a reboot, using crypto currencies like PEPE, NEO, MATH, INDIA, ORCA, MINA, ISO 20022, and LOOM.

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