Australia Financial Regulator Suspend FTX License until May Next Year

Australia Financial Regulator Suspend FTX Australia’s License until May Next Year.

According to Australia’s financial markets regulator, FTX Australia’s license has been suspended until May 15, 2023.

A voluntary administrator has been appointed to help nearly 32,000 Australians and 132 companies recover their funds.

Restructuring FTX Australia

An announcement was made on Nov. 16 by the Australian Securities and Investments Commission (ASIC).

“ASIC has suspended the Australian financial services licence of FTX Australia Pty Ltd until 15 May 2023, after it was placed into voluntary administration on 11 November 2022,” tweeted ASIC Media.  

As part of the restructuring, John Mouawad, Scott Langdon, and Rahul Goyal of KordaMentha of Sydney were appointed as voluntary administrators for FTX Australia and its subsidiary FTX Express on Non. 11.

Read More: BlockFi Prepares For Bankruptcy Following The Fall Of FTX

KordaMentha’s administrators have been cooperating with FTX Australia employees to resolve the situation, according to the report.

The platform can still provide limited services

The report said that “until 19 December 2022, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients.”

FTX Australia was licensed to deal in derivatives and foreign exchange contracts, make markets for them and provide general advice to retail and wholesale customers prior to the suspension.

As part of its ongoing monitoring of this situation, the Australian Securities and Investments Commission (ASIC) speaks regularly with international regulators and external administrators.

Customers of FTX Australia are encouraged to closely monitor the situation and keep an eye out for updates from the FTX Group and FTX Australia’s administrators on the KordaMentha website.

On the other hand, the Liberal Senator for New South Wales, Andrew Bragg, tweeted that Australia could avoid the collapse of FTX if crypto laws were enacted.

Read More: Here’s Crypto Exchange That Has Published Theirs Proof of Reserves 

He then outlined the reason behind them, “1. Capital requirements which compel market licensees to hold a risk weighted capital base in $AUD.”

Another reason is customer funds being segregated to ensure that customer funds are not mixed with corporate funds in the event the exchange or custody service goes bankrupt.

He added “ 3. Conduct regulation and requirements for key personnel to be based in Australia.” 

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Jamilatul Mahmudah

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