FTX Australia has seen its financial permit revoked after its bankruptcy declaration.

The Australian Securities and Investments Commission (ASIC) has significantly changed the regulatory landscape for cryptocurrencies in Australia by taking decisive action against FTX Australia as a result of its bankruptcy. revoking the financial license This measure came after the local branch of the now-bankrupt cryptocurrency exchange submitted its bankruptcy filings.

The license revocation took place on July 14, with ASIC announcing this decision publicly on July 19. FTX Despite the revocation, FTX Australia will still be allowed to conduct limited financial operations until July 12 of next year to handle outstanding client matters. However, the company must ensure client compensation during this period.

FTX Australia once serviced approximately 30,000 clients and worked with 132 local businesses. The removal of its license will have serious impacts on its former clients and partner firms. In November 2022, ASIC had already suspended the firm's Australian Financial Services license, which enabled them to offer derivatives and forex contracts to local customers, subsequent to the bankruptcy announcement from FTX in the Bahamas on November 11, 2022.

ASIC has officially revoked the financial services license that was previously held by FTX Australia. https://t.co/Gsmsg9XcYj

— ASIC Media (@asicmedia) July 19, 2023

FTX’s bankruptcy

Following its bankruptcy declaration, FTX appointed FTX Express along with administrators from KordaMentha, a Sydney-based investment firm. The head of restructuring submitted a report to a bankruptcy court in the U.S. last month, indicating that around $7 billion in liquid assets were secured, yet also revealing a claimed mismanagement of customer assets amounting to nearly $8.7 billion. FTX Even with the cancellation of its financial license, there’s a possibility for FTX to reconstruct itself as a new exchange. The restructuring team is actively exploring conversations with potential investors willing to financially back this rebirth. This development raises hopes for clients who might recover some of their investments if the exchange successfully manages to relaunch with new funding.

Following Binance Global Inc.'s retraction of their acquisition offer for FTX.com, cryptocurrency prices have taken a downturn, putting the exchange's future in jeopardy.

• Uwerx (WERX) and SingularityNET (AGIX) are poised to pave the way for the future of the cryptocurrency realm. collapse.

Read more related articles:

• GameStop is boosting its stance in the cryptocurrency market with a strategic partnership with FTX.
• The Brazilian Central Bank is set to take on a regulatory role in the cryptocurrency space.
• Please be advised that the content on this page is not meant to serve as legal, tax, investment, or financial advice. Consider only investing what you can afford to lose and consult an independent financial advisor if necessary. For more information, we encourage you to review the terms and conditions and the help sections provided by the issuer or advertiser. Metaverse Post remains committed to providing accurate and impartial reporting, though market conditions may shift without prior notice.