Prior to December 19, FTX Australia is only permitted to provide a limited range of financial services that are wholly focused on ending already-existing derivative contracts with its clients.
According to Cointelegraph, Australia’s financial markets authority terminated FTX Australia’s banking license after a voluntary administrator was appointed to help approximately 30,000 Australians and 132 Australian firms recover their assets from FTX.
The local entity of FTX’s AFS license has been suspended until May 15, 2023, according to Cointelegraph, which reports that the Australian Securities and Investments Commission (ASIC) issued the statement on November 16 local time.
Before it was revoked, FTX Australia’s AFS license gave it the authority to create a market for foreign currency contracts and derivatives for Australian retail and wholesale clients. According to Cointelegraph, FTX Australia acted as a gateway for Australian traders who registered to trade digital assets.
According to Cointelegraph, FTX Australia is only permitted to provide a restricted number of financial services up to December 19 that are specifically dedicated to ending current derivative contracts with its clients.
The suspension follows the November 11 appointment of John Mouawad, Scott Langdon, and Rahul Goyal as voluntary administrators to offer restructuring services to FTX Australia and its subsidiary FTX Express by Sydney-based investment and consulting firm KordaMentha.
130 businesses affiliated with FTX, including FTX US and its partner trading company Alameda Research, filed for Chapter 11 bankruptcy on November 11, the same day Bankman-Fried announced his resignation as the CEO of FTX.
According to ASIC, FTX Australia may appeal the decision of ACIS by submitting an application to the Administrative Appeals Tribunal.
