Australian Authorities Revoke FTX Australia’s License
Until December 19, 2022, FTX Australia will be able to provide limited goods and services.
In response to FTX Australia’s recent mishap, the Australian Securities & Investments Commission (ASIC) has suspended the exchange’s licence until 15 May 2023.
Approximately 30,000 Australian customers are investigating how to recoup their monies as a result of the catastrophe.
Recent Attacks on FTX
The Australian subsidiary of FTX will be allowed to offer limited services to local consumers until December 19, 2022, notwithstanding the expiration of its licence.
The ASIC reminded the crypto exchange that it was authorised to “provide general advice relating to derivatives foreign exchange contracts to retail and wholesale clients.” Nonetheless, the collapse of FTX altered the trend, and the regulator was forced to take significant steps to safeguard domestic consumers.
“ASIC is monitoring this situation closely and speaking regularly with international regulators and the external administrators. ASIC encourages clients of FTX Australia to carefully monitor the situation and look out for updates by the FTX Group, as well as from FTX Australia’s administrators,” the agency alerted.
The suspension occurs a few days after the authorities selected John Mouawad, Scott Langdon, and Rahul Goyal (of the advising company KordaMentha) to assist local accident victims in recovering some of their possessions.
According to a recent report, at least 30,000 Australians and over 130 businesses have incurred losses as a result of the problem.
The Domino Reaction
Sam Bankman-crypto Fried’s platform’s failure has sent shock waves across the whole industry. The market for digital assets plummeted far below $1 billion, while the majority of currencies lost a substantial portion of their value (bitcoin is down roughly 10% in the previous week).
Concerned about their cash kept on other exchanges, a large number of people began bulk withdrawals. As stated by CryptoPotato, more than $8 billion worth of cryptocurrencies left trading platforms between November 6 and November 14.
Leading organisations in the field revealed their audited proof of reserves to clients in order to demonstrate full transparency and mitigate the effect of the disaster. Some went even farther by instituting recovery funds to assist customers in times of hardship.
Binance, the biggest cryptocurrency exchange in the world, increased its Secure Asset Fund for Users (SAFU) to $1 billion, while OKX pledged to provide $100 million to impacted projects and organisations willing to relocate away from Solana.
