{"id":54760,"date":"2023-07-19T16:04:05","date_gmt":"2023-07-19T20:04:05","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=54760"},"modified":"2023-07-20T06:12:27","modified_gmt":"2023-07-20T10:12:27","slug":"asic-cancels-ftx-australias-license-amid-crypto-regulation","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/asic-cancels-ftx-australias-license-amid-crypto-regulation\/","title":{"rendered":"ASIC Cancels FTX Australia\u2019s License Amid Crypto Regulation"},"content":{"rendered":"\n<p>The local affiliate of the defunct cryptocurrency exchange, <a href=\"https:\/\/coinscreed.com\/staging\/ftx-exchange-launches-in-australia.html\" target=\"_blank\" rel=\"noreferrer noopener\">FTX Australia<\/a>, has had its banking license canceled by the Australian financial regulator.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-1024x576.jpg\" alt=\"ASIC Cancels FTX Australia\u2019s License Amid Crypto Regulation\" class=\"wp-image-54762\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-1024x576.jpg 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-300x169.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-768x432.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-750x422.jpg 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814-1140x641.jpg 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">ASIC Cancels FTX Australia\u2019s License Amid Crypto Regulation<\/figcaption><\/figure>\n\n\n\n<p>The revocation was notified on July 19 by the <a href=\"https:\/\/www.bing.com\/search?q=ASIC+Cancels+FTX+Australia%E2%80%99s+License+Amid+Crypto+Regulation&cvid=af5b9c89f46d4fbcb692d6d042e6dd0b&aqs=edge..69i57j69i61.263j0j1&FORM=ANAB01&PC=WSEDDB\" target=\"_blank\" rel=\"noreferrer noopener\">Australian Securities and Investments Commission<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> (ASIC). It becomes effective on July 14.Until July 12, 2023, the exchange will be permitted to provide a limited range of financial services before ceasing all client interactions.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-twitter\"><blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">ASIC has cancelled the Australian financial services licence held by FTX Australia <a href=\"https:\/\/t.co\/Gsmsg9XcYj\" target=\"_blank\">https:\/\/t.co\/Gsmsg9XcYj<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/p>&mdash; ASIC Media (@asicmedia) <a href=\"https:\/\/twitter.com\/asicmedia\/status\/1681493561605234688?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">July 19, 2023<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/div><\/figure>\n\n\n\n<p>As required by the regulatory body, FTX Australia must also create plans for compensating its clients during this time. Before the cancellation, FTX Australia provided services to 132 regional businesses and served about 30,000 retail customers.<\/p>\n\n\n\n<p>When ASIC suspended FTX Australia's Australian Financial Services (AFS) license, which allowed the development of derivatives and foreign currency contracts for domestic clients, the company's problems started. <\/p>\n\n\n\n<p>The suspension occurred soon after Bahamas-based <a href=\"https:\/\/coinscreed.com\/staging\/ftx-customers-want-identities-redacted-from-bankruptcy-filings.html\" target=\"_blank\" rel=\"noreferrer noopener\">FTX's bankruptcy filing<\/a> on November 11, 2022. After FTX filed for bankruptcy, administrators from Sydney-based investment and advisory company KordaMentha were hired to help restructure FTX Australia and its subsidiary, FTX Express.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ftx-s-ongoing-legal-issues\">FTX's ongoing legal issues<\/h2>\n\n\n\n<p>Once regarded as a major international cryptocurrency exchange, the crypto exchange suffered a serious setback last November when it was revealed that its founder and former CEO, <a href=\"https:\/\/coinscreed.com\/staging\/anthony-scaramucci-speaks-on-sam-bankman-frieds-actions.html\" target=\"_blank\" rel=\"noreferrer noopener\">Sam Bankman-Fried<\/a>, had engaged in dubious business practices. <\/p>\n\n\n\n<p>The exchange's abrupt collapse was caused by its inability to withstand the sudden withdrawal pressures. Sam Bankman-Fried is being prosecuted on numerous criminal and civil counts in the US due to the collapse. <\/p>\n\n\n\n<p>In addition, several other high-ranking the exchange's associates have previously entered guilty pleas to accusations that were brought against them.Regulations against FTX did not just apply to Australia. <\/p>\n\n\n\n<p>Cyprus suspended the operational license for the exchange on November 11, 2022, and it will remain suspended until the end of September 2023.<\/p>\n\n\n\n<p>Despite complicated bankruptcy proceedings, the exchange's companies have started restoring consumer cash. For instance, FTX Japan started withdrawals on February 21, 2023 in response to an enormous demand from consumers who wanted access to their money.<\/p>\n\n\n\n<p>FTX's European affiliate also launched a dedicated withdrawal page, albeit particular data was not provided. The Australian subsidiary's administrators have not yet officially affirmed the repatriation of consumer money.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The local affiliate of the defunct cryptocurrency exchange, FTX Australia, has had its banking license canceled by the Australian financial regulator. The revocation was notified on July 19 by the Australian Securities and Investments Commission (ASIC). It becomes effective on July 14.Until July 12, 2023, the exchange will be permitted to provide a limited range [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":54762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[2285,778,884],"class_list":["post-54760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-asic","tag-ftx","tag-regulations"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/07\/croc_1689795804814.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/54760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=54760"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/54760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/54762"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=54760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=54760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=54760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}