The Australian Securities and Investments Commission (ASIC) has cancelled the licence of Velos Global Markets, which offered contracts for differences (CFDs) trading, due to inactivity.
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No Service, No Licence
Announced today (Friday), the cancellation took effect on 23 September 2025. The company received the Australian Financial Services (AFS) licence in November 2017.
According to the regulator, the CFDs broker did not offer any financial services under the Australian licence from around May 2024.
“ASIC cancelled the AFS licence under section 915B(3) of the Corporations Act 2001 (Cth) after ASIC became aware that Velos had ceased to engage in financial services,” the announcement by ASIC noted.
However, the brokerage operator can still appeal to the Administrative Review Tribunal for a review of ASIC’s decision.
FinanceMagnates.com approached Velos but did not receive any response.
Other Regulators Also Face Inactivity Issue
The United Kingdom’s Financial Conduct Authority (FCA) last year revealed that about 20 per cent of locally licensed CFDs brokers were inactive. However, it did not begin cancelling those licences or at least did not announce such actions publicly.
Meanwhile, many CFDs brokers have also wrapped up their UK operations. FinanceMagnates.com earlier reported that AETOS gave up its UK licence and also closed its offshore operations. The broker now only operates with its Australian authorisation.
Other brokers to exit the UK market include ADSS and TrivePro. ICM.com is also in the process of relinquishing its FCA licence.
Last year, the Australian regulator also cancelled the licences of Xtrade, FXOpen and Prospero Markets. ASIC also recently removed more than 9,240 pages of regulatory content as part of a wider effort to streamline rules that businesses say have become too complex and costly to follow.
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This article was written by Arnab Shome at www.financemagnates.com.
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