ASIC suspends FTX Australia AFSL

Mike Taylor

Managing Editor/Publisher, Financial Newswire

16 November 2022

The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services License (AFSL) of trading platform, FTX Australia.

The regulator announced it had suspended the license until 15 May, next year, in the wake of FTX being placed into voluntary administration on 11 November.

The announcement said that until 19 December, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients.

On 11 November 2022, John Mouawad, Scott Langdon and Rahul Goyal of KordaMentha were appointed as voluntary administrators of FTX Australia and its subsidiary FTX Express Pty Ltd, which operates a digital currency exchange that is not regulated by ASIC

On the same day, FTX Trading Limited, West Realm Shires Services Inc (trading as FTX US) and certain other affiliated companies commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code. FTX Trading Limited became the ultimate holding company of FTX Australia on 23 September 2021.

Prior to the suspension, 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.

The ASIC announcement said the regulator is monitoring this situation closely and speaking regularly with international regulators and the external administrators.

“ASIC 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 web site,” it said.