FTX Australia’s AFS licence cancelled

Corporate regulator ASIC has announced the cancellation of the Australian financial licence held by FTX Australia, the local arm of a collapsed US cryptocurrency exchange, effective July 14.

Under the terms of cancellation, FTX Australia was allowed to provide limited financial services that relate to the termination of existing derivatives with clients until July 12.

The cancellation has no effect on FTX Australia’s requirements to continue as a member of Australian Financial Complaints Authority, and to have arrangements for compensating retail clients.

The cancellation was announced after ASIC suspended FTX Australia’s AFS licence until May 15, which was subsequently extended to July 24.

On Nov. 11, FTX was placed into voluntary administration, along with its subsidiary, FTX Express, which operated a digital currency exchange not regulated by ASIC. John Mouawad, Scott Langdon, and Rahul Goyal of KordaMentha were appointed as voluntary administrators.

Prior to the suspension and cancellation, ASIC said 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.”

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