Australian market watchdog revokes FTX Australia’s AFS license

The Australian arm of the crumbled crypto exchange FTX once supported 30,000 retail clients, however, financial authorities have now chosen to cancel its license.

The Australian Securities and Investments Commission (ASIC) has canceled the Australian Financial Services (AFS) license held by FTX Australia, effective from July 14.

As per the terms of the cancellation, the bankrupt crypto exchange’s Australian entity will be able to provide a limited range of financial services during its winding down process, however, this can only continue until July 12, 2024.

Until then, ASIC has asked the firm to cultivate a plan to repay its customers.

“The cancellation has no effect on requirements for FTX Australia to continue as a member of the Australian Financial Complaints Authority,” read an official statement from the government body.

However, under the required provisions, FTX Australia must “have arrangements for compensating retail clients.”

The move comes at a time of vigilance across the crypto industry, with many firms toughening their stance on regulation amid an intense crackdown preceding the crash of FTX, a demise that caused many major firms to plummet – both traditional and blockchain-based.

Two entities opened by the Bahamas-headquartered exchange were FTX Australia — the firm holding the license to offer derivative products to local clients — and FTX Express, the company responsible for enabling customers the opportunity to exchange fiat for crypto conversely.

Nonetheless, last November, during FTX’s bankruptcy, ASIC decided to suspend the firm’s license until May, thus taking away FTX’s permit to deal in derivate and foreign exchange contracts to clients.

As part of the crypto clampdown across Australia, the Commonwealth Bank of Australia announced its plans to temporarily suspend specific payments to crypto exchanges in a bid to battle scams across the country. 

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Written by Isabella Aslam


Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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