Key Points:
- FTX’s launch in Australia around March 2022 raised questions about claims of a return on investment.
- ASIC warned an article by the Australian Financial Review on the debut of FTX in Australia, according to 56 documents that were made public by ASIC.
- Stephen Jones, the assistant treasurer for Australia, rebuffed ASIC’s claim that it lacked the authority to interfere with FTX’s financial services license in December 2022.
According to a document from the regulator, internal discussions about FTX’s launch in Australian around March 2022 raised questions about claims of a return on investment.
ASIC warned an article by the Australian Financial Review on the debut of FTX in Australia, according to 56 documents that were made public by ASIC on Monday. According to the publication, FTX would let dealers borrow up to 20 times their initial investment in order to purchase crypto assets.
ASIC’s inquiries have previously been covered by The Guardian
On November 11, 2022, hours before FTX sought bankruptcy protection in the US, FTX Australia appointed administrators, a procedure that transfers authority to qualified insolvency professionals. Shortly after, the Australian government took action to improve crypto security.
About 30,000 consumers are owed money or cryptocurrencies by the exchange.
Stephen Jones, the assistant treasurer for Australia, rebuffed ASIC’s claim that it lacked the authority to interfere with FTX’s financial services license in December 2022. According to Jones, ASIC already has “broad authorities” to revoke, suspend, or modify an Australian Financial Services Licence.
“Since March 2022, ASIC had made enquiries with FTX Australia about the financial products offered by FTX Australia. The issues raised included pricing, FTX Australia’s compliance with ASIC’s CFD product intervention order and its on-boarding of clients,” an ASIC spokesperson said.
“ASIC’s review of these matters was on-going as at the time that external administrators were appointed to the Australian FTX entities,” the spokesperson added.
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