FTX Australia is Confronted with Retaliation from Australia

FTX Australia is the FTX-backed firm that can currently be found operating in Australia delivering cryptocurrency services. According to the sources, the authorities in Australia have taken away FTX Australia's operating license without providing an explanation.

According to reports, the license of FTX Australia has been revoked by the Australian government agency responsible for supervising financial markets. After receiving a complaint from the local investors, the regulator investigated the exchange and ultimately decided to take action against it.

There were a total of 132 companies based in Australia who participated in the investment, in addition to 30,000 local citizens who are ready to receive their money back from FTX.

A complaint has been lodged against the exchange, and a voluntary administrator who has been tasked with pursuing the matter has been appointed to do so.

The disclosure that was made by the ASIC

The Australian Securities and Investments Commission made a statement regarding the FTX Australia exchange on November 16th.

The regulatory agency made the announcement that they would be suspending the license that allowed the exchange to operate within Australia.

The regulatory body stated unequivocally that the license for providing Australian Financial Services (AFS) was the one that the exchange had obtained from them. The Australian Securities and Investments Commission (ASIC) has stated that the license has been revoked until the 15th of May, 2023.

Advantages of Obtaining an AFS License

As a result of the exchange's acquisition of the AFS license, it was able to make foreign exchange contracts available to residents of Australia. Additionally, the exchange was awarded the authorization to both operate and establish a derivatives market.

If granted approval, the FTX Australia organization would be authorized to solicit business from individual customers as well as retail and wholesale customers.

The FTX Australia platform was recommended to anyone who expressed interest in becoming a trader and registered an account for digital assets.

In spite of the suspension, the exchange is still able to provide some level of financial services to the people living in Australia, albeit on a much reduced scale. The exchange is no longer allowed to provide Australians with the option to purchase derivative contracts.

Administrators Working on the Case Who Are Volunteering Their Time

According to the reports, three administrators working for KordaMentha, an advisory and investment firm based in Sydney, have volunteered to take on the case on their own. The names of the individuals in question are Rahul Goyal, Scott Langdon, and John Mouawad.

As it operates in Australia, FTX Australia is currently in a crippled state because of the situation. It is not the only entity that is being affected by the suspension of FTX Express; since November 11, its subsidiary has also been affected by the same suspension.

Now, the exchange is obligated to give back the money that was invested by thousands of Australian investors. In the event that it is unable to complete the task, it will move forward with the bankruptcy filing process, adding yet another failure to FTX's list of bankruptcies.

While this is going on, the market price of FTX Token, also known as FTT, has suffered another loss. This time, the price of FTX Token has experienced a drop of 14.48% over the course of the previous twenty-four hours.

At the time of this writing, FTT trades at a price that is at an all-time low of $1.56, and it is continually losing value on the market.