ASIC Raises Concerns Over FTX’s Australia Launch
ASIC, Australia‘s markets regulator, has raised concerns over FTX‘s planned launch in Australia in March 2022. According to 56 documents published by ASIC, the regulator had flagged an article by the Australian Financial Review which claimed FTX would allow traders to buy crypto assets with margin loans up to 20 times their investment. This has raised questions around the return on investment claims made by FTX. The documents also revealed that ASIC had internally discussed FTX‘s launch in Australia. This news has caused concern among investors and traders in the country.
FTX Australia Files for Bankruptcy Protection
In November 2022, FTX Australia, a cryptocurrency exchange, called in administrators and filed for bankruptcy protection in the United States. This news came shortly after The Guardian reported on enquiries from the Australian Securities and Investments Commission (ASIC). FTX Australia owes around 30,000 customers cryptocurrency or money. In December 2022, Australia‘s Assistant Treasurer Stephen Jones pushed back against ASIC‘s suggestion that it lacked the power to intervene on the financial services license of FTX. This news has caused the government to take steps to tighten safety around crypto. This article will discuss the implications of FTX Australia’s bankruptcy filing and the government’s response.
ASIC Investigates FTX Australia
The Australian Securities and Investments Commission (ASIC) has been making enquiries with FTX Australia since March 2022. The issues raised include pricing, compliance with ASIC’s CFD product intervention order and client on–boarding. The review of these matters is still ongoing, even after external administrators were appointed to the Australian FTX entities. ASIC is committed to ensuring that financial products are offered in a fair and transparent manner, and that consumers are protected from any potential harm. The investigation into FTX Australia is part of ASIC’s ongoing efforts to ensure that the financial services industry is operating in the best interests of consumers.
