Australian regulator cancels the license of FTX Australia following the exchange going out of business

Following the exchange’s most recent mishap, the Australian Securities & Investments Commission (ASIC) suspended the FTX Australia license until May 15, 2023.

About 30,000 Australian consumers have been impacted by the crash and are looking into ways to get their money back.

FTX’s Australian subsidiary will be able to offer restricted services to local clients until December 19, 2022, despite the license’s expiration.

In addition, FTX was notified by the ASIC that it was authorized to provide general advice relating to derivatives and foreign exchange contracts to retail and wholesale clients.

However, the collapse of FTX reversed the trends, forcing the regulator to take drastic action to safeguard domestic users.

Furthermore, the agency noted,

“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.”

A few days prior to the suspension, the government named John Mouawad, Scott Langdon, and Rahul Goyal to assist local crash victims recover some of their lost assets.

According to recent reporting, the crisis had caused losses for over 130 businesses and at least 30,000 Australians.