In news that isn’t suprising for the broader crypto and investment community, The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023.
The cancellation comes after FTX Australia was placed into voluntary administration on 11 November 2022. ASIC suspended FTX Australia’s AFS licence on 14 November 2022, and the suspension was subsequently extended to 24 July 2023.
In a media release, ASIC said that the cancellation of FTX Australia’s AFS licence was necessary to protect consumers. ASIC noted that FTX Australia had been unable to meet its obligations as an AFS licensee, and that the company’s financial position had deteriorated significantly.
The cancellation of FTX Australia’s AFS licence means that the company can no longer provide financial services in Australia. However, FTX Australia is still permitted to provide limited financial services that relate to the termination of existing derivatives with clients.
ASIC has also said that the cancellation of FTX Australia’s AFS licence has no effect on the company’s membership of the Australian Financial Complaints Authority (AFCA). This means that clients of FTX Australia who have a complaint about the company can still have their complaint heard by AFCA.
In related FTX Australia news OKX Australia has announced it has hired Ex-FTX Country Manager/ Director Jamie Kennedy to head up their operations in Australia. According to AFR, Mr Kennedy was Country Manager at the time of FTX’s Australian collapse which has lost 30,000 plus Australian’s close to $80m.
References
ASIC. (2023, July 14). ASIC cancels AFS licence of FTX Australia. Retrieved from https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-193mr-asic-cancels-afs-licence-of-ftx-australia/
Financial Standard. (2023, July 14). ASIC cancels FTX Australia’s licence. Retrieved from https://www.financialstandard.com.au/news/asic-cancels-ftx-australia-s-licence-179800503
