Australian financial regulators are understood to have expressed concern about FTX's Australian subsidiary in August, long before FTX suffered a senseless bankruptcy last November.

According to documents obtained by the Guardian Australia, the Australian Securities and Investment Commission (ASIC) has expressed concern about the way FTX Australia can operate after it gets a license plate in the country through corporate acquisitions.

According to a previous report by Cointelegraph, FTX won the Australian Financial Services license Plate (AFSL) through the acquisition of financial company IFS Markets in December 2021 and opened in March a few months later.

According to Joe Longo, the current chairman of its ASIC, this also allows FTX Australia to effectively avoid the same level of verification that is generally available to new AFSL license holders.

According to the newly obtained documents, regulators issued an article 912C notice to FTX this month, when it was gradually operating, requiring it to log into the password trading center to provide information about its operation for ASIC to assess whether it meets the AFSL license standards.

With this notice, ASIC is able to mark the documents given by the licensee specifying the financial services it provides and the financial services business processes it is engaged in to confirm whether the licensee meets the "moderate candidate test".

A newsletter obtained by the Guardian also confirmed that in the months between ASIC's initial concerns and the collapse of FTX on Nov. 11, regulators placed the trading center under "monitoring themed events" and issued a total of three notices.

The document schedule also shows that regulators were still worried about FTX's operations until October.

Cointelegraph contacted ASIC for comment, but did not receive a text message before the announcement.

FTX Australia is one of more than 130 FTX-related companies whose head office, FTX, went into liquidation on November 11th.

FTX's Australian subsidiary was suspended from its financial license on November 16th and has entered a self-regulatory approach similar to the Chapter 11 bankruptcy of the US bankruptcy law.

According to statistics, about 30000 Australian users and 132 companies are owed money or data encryption to the trading center.