ASIC Suspended FTX Australia’s AFS Licence

FTX Australia’s financial services license in the nation has been suspended by the Australian Securities and Investments Commission (ASIC) until May 15, 2023.
ASIC Suspended FTX Australia’s AFS Licence

Following the appointment of a volunteer administrator to assist approximately 30,000 Australians and 132 Australian firms in recovering their cash from FTX, Australia’s financial markets regulator terminated FTX Australia’s financial license.

The ASIC announced the statement on November 16 local time, suspending the local entity of FTX’s AFS license until May 15, 2023.

“Until 19 December 2022, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients.”

ASIC Suspended FTX Australia’s AFS Licence

Prior to its suspension, FTX Australia’s AFS license allowed it to establish a market for foreign exchange contracts and derivatives for retail and wholesale clients based in Australia. FTX Australia served as the conduit for Australian traders who registered to trade digital assets. The release said:

“Prior to the suspension, FTX Australia’s licence permitted it to deal in, make a market for and provide general advice relating to derivatives and foreign exchange contracts to retail and wholesale clients.”

As Coincu reported, FTX Australia had appointed administrators to replace Sam Bankman-Fried. John Mouawad, Scott Langdon, and Rahul Goyal of KordaMentha were appointed as FTX Australia’s voluntary administrators on November 12, along with FTX Express Pty Ltd, a digital currency exchange that the commission does not regulate.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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