More scrutiny of Australian financial services licences needed, says parliamentary committee after collapse of FTX

A parliamentary committee has recommended more scrutiny of transfers of financial services licences after questioning Asic about a licensing loophole. Photograph: Dado Ruvić/Reuters

The collapse of cryptocurrency trading company FTX while it held an Australian financial services licence (ASFL) has led a parliamentary committee to recommend more scrutiny of the transfer of such licences and an audit of current licence holders.

In a report released on Monday, the committee said FTX’s ability to acquire what was a “difficult and highly prized” licence “raises significant concerns” about the regulation of the licences.