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FTX Australia Loses Currency Approval: Australian Regulator Terminates Crypto Exchange License
Australia's monetary regulator has canceled the currency license of FTX Australia, a local subsidiary of the neglected crypto swap. The Australian Securities and Investments Commission (ASIC) announced the termination on July 19. The exchange will be allowed to offer minimal financial services while completing its own transactions with customers until July 12, 2023. FTX Australia was previously responsible for serving around 30,000 retail customers and providing solutions to 132 local businesses. However, problems for the company began in November 2015 when its Financial Services License (AFS) was suspended by ASIC. This happened shortly after parent company FTX filed for bankruptcy. After …
FTX Australia Loses Currency Approval: Australian Regulator Terminates Crypto Exchange License
Australia's monetary regulator has canceled the currency license of FTX Australia, a local subsidiary of the neglected crypto swap. The Australian Securities and Investments Commission (ASIC) announced the termination on July 19. The exchange will be allowed to offer minimal financial services while completing its own transactions with customers until July 12, 2023.
FTX Australia was previously responsible for serving around 30,000 retail customers and providing solutions to 132 local businesses. However, problems for the company began in November 2015 when its Financial Services License (AFS) was suspended by ASIC. This happened shortly after parent company FTX filed for bankruptcy.
After declaring bankruptcy, the company was tasked with restructuring FTX Australia and its subsidiary FTX Express. However, the ongoing legal issues for FTX extend not only to Australia, but also to Cyprus, where the swap's functional approval has been deferred and remains suspended until the end of September 2023.
The government activity against FTX has resulted in its subsidiaries starting to recover consumer funds. FTX Japan, for example, found itself in crisis again in February 2023 when customers tried to access their money. FTX’s European subsidiary has also taken measures to help customers recover their capital.
FTX was once a popular crypto exchange, but faced questionable organizational processes and company failure. This led to illegal and public attacks on former CEO Sam Bankman-Fried. Despite the challenges and the termination of the currency approval, the managers of the Australian subsidiary continue to strive to recover customer funds.
This article reflects on the current developments surrounding FTX Australia and provides an overview of the legal issues facing the company. It remains to be seen how the situation will develop in the future and whether FTX will be able to resume operations.