ASIC Announces Suspension of FTX Australia’s AFS Licence

The Australian Securities & Investments Commission (ASIC) has suspended the Australian financial services (AFS) licence of FTX Australia Pty Ltd (AFSL 323193) until 15 May 2023.

The licence authorised FTX Australia 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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The suspension follows the appointment of John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha as voluntary administrators to FTX Australia and its subsidiary FTX Express Pty Ltd on 11 November 2022. On the same day, FTX's license in Cyprus​ was suspended by the jurisdiction's securities regulator following a liquidity crunch that prompted a withdrawal freeze.

Under the terms of the cancellation, FTX Australia's licence will remain in effect until 19 December 2022 solely for the purposes of providing limited financial services that relate to the termination of existing derivatives with clients.

As detailed in the official press release, ASIC is monitoring this situation closely and speaking regularly with international regulators and the external administrators. The regulator encourages clients of FTX Australia to carefully monitor the situation and look out for updates by the FTX Group, as well as from FTX Australia's administrators on the KordaMentha website.