Australian financial regulations are taking action about the FTX exchange to safeguard users.
The most recent event was FTX Australia’s AFS license suspension until May 15, 2023.
Numerous people, organizations, and platforms were impacted by the collapse of FTX, which had a domino effect on the cryptocurrency market. Additionally, the likelihood of affiliated companies filing for bankruptcy is rising. As such, SBF, the CEO of FTX, might be the target of several lawsuits and legal actions.
However, one thing is for certain: legislators worldwide will step in.
The FTX exchange was placed under “voluntary administration,” and the ASIC acknowledged it on its official website on November 16.
The exchange will have a certain amount of time prior to the suspension to wind up certain financial services, such as trading in, establishing a market for, and giving general information about derivatives and foreign currency contracts to retail and wholesale clients.
Moreover, the authorities added:
“Until 19 December 2022, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients.”
After the cryptocurrency exchange platform went bankrupt, local FTX customers were locked out of their accounts, leaving at least 30,000 Australian investors and 132 businesses in limbo.
KordaMentha was chosen as the voluntary administrator of FTX Australia and FTX Express Pty Ltd to reassure the impacted users.
“KordaMentha is now in control of both FTX Express and FTX Australia. We are working cooperatively with the directors to confirm the status quo and will report back to all stakeholders. We appreciate the uncertainty this creates for customers of FTX and will report to all customers as a matter of urgency.” – said Scott Langdon, representative of a Sydney-based investment and advisory firm.
Overall, FTX’s time in Australia, where it initially planted roots on March 20 of this year, was very brief.