FTX Once Advocates Tightening Client Assets Protection Regulations In Australia

In a letter to the Australian government a little more than five months before the cryptocurrency exchange failed, FTX highlighted its strong security measures and lobbied against additional controls on customer money, Bloomberg reports.

FTX, in a May 29 submission to the nation’s Treasury department, was just made public that crypto businesses should not be required to hold customer money locally or use third-party firms. The exchange said in the Australian letter:

“Large more sophisticated groups such as FTX have invested significant sums in robust security practices which achieve the necessary levels of security while keeping custody of assets in-house.”

FTX added:

“By providing regulatory certainty, consumers can be confident that they are dealing with legitimate businesses and that their consumer rights can be enforced. Likewise, a clear regulatory regime will provide greater business certainty.”

The claims in the Australian letter contradict the opinion of new FTX CEO John J. Ray III, who recently stated that the exchange has absolutely concentrated control in the hands of a very small group of extremely incompetent and unsophisticated persons.

Before the collapse, the exchange was also considered one of the leading reputable platforms among investors.

The Australian government has considered tightening monetary regulations to avoid the contagion after the empire disappeared from the crypto industry. Sam Bankman-Fried, the head of FTX, is said to be very supportive of crypto regulations.

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