ASIC Revokes AFS License of FTX Australia

The Australian Securities & Investments Commission (ASIC) today announced the cancellation of the Australian financial services (AFS) licence held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023. Last month, the regulator also revoked the license of APBG Capital Pty Ltd​.

On November 11, 2022, John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha, an Asia-Pacific advisory and investment firm, were appointed as voluntary administrators of FTX Australia and its subsidiary, FTX Express Pty Ltd, which operates a non-ASIC regulated digital currency exchange.

On November 14, 2022, ASIC suspended the AFS license of of FTX Australia​ until May 15, 2023, and then extended to July 24, 2023.

In the latest announcement released by ASIC, the terms of the cancellation include provisions that, until the end of 12 July 2024: FTX Australia may provide limited financial services that relate to the termination of existing derivatives with clients; and the cancellation has no effect on requirements for FTX Australia to continue as a member of Australian Financial Complaints Authority, and to have arrangements for compensating retail clients.