FTX Australia Loses Financial Service License

The Australian Securities and Investment Commission (ASIC) has canceled the Australian financial services (AFS) license held by FTX Australia Pty Ltd effective from 14 July 2023.

FTX Australia is a subsidiary of FTX that is in bankruptcy in US courts. FTX Australia was placed into administration in November 2022. This included FTX Express Pty Ltd, which operated a digital currency exchange that ASIC noted was not regulated.

ASIC said that FTX Australia may provide limited financial services related to the termination of existing derivatives with clients, and the cancellation has no effect on the requirements for FTX Australia to continue as a member of the Australian Financial Complaints Authority and to have arrangements for compensating retail clients.

On 14 November 2022, ASIC suspended FTX Australia’s AFS license until 15 May 2023, which was subsequently extended to July 24, 2023.  Prior to the suspension, FTX Australia’s license 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.

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