ASIC Suspends FTX’s AFS License

The company is allowed to offer limited services until 19 December.

It has also entered into voluntary administration.

The Australian Securities and Investments Commission (ASIC) has suspended the license of FTX Australia Pty Ltd, the local subsidiary of the troubled cryptocurrency exchange, FTX.com, until 15 May 2023. The move came as the entity was placed under voluntary administration on 11 November.

Before ASIC, the financial market regulator in Cyprus suspended the license of the local unit of FTX that allowed the exchange to offer services across the European Economic Area (EEA).

Wednesday’s official announcement detailed that FTX Australia will be permitted to provide limited financial services until 19 December. However, it will be limited to terminating existing derivative contracts with the clients.

FTX Australia was operating in the country with an Australia Financial Services (AFS) license that allowed the company to offer derivatives and foreign exchange contracts to retail and wholesale clients. However, FTX Express did not obtain any license. Now, the two companies have appointed three voluntary administrators, John Mouawad, Scott Langdon, and Rahul Goyal of KordaMentha.