News

Australian Regulator Had Raised Concerns About FTX Internally

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

1 hour ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

2 hours ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

2 hours ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

5 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

5 hours ago

This website uses cookies.