ASIC has cancelled the Australian financial services (AFS) licence held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023.

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.

Background

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 not regulated by ASIC.

On 14 November 2022, ASIC suspended FTX Australia’s AFS licence until 15 May 2023 (22-316MR), which was subsequently extended to 24 July 2023.