When she heard the news of the FTX collapse, Caroline Bowler’s first thoughts were with investors. As the CEO of the Australian digital assets exchange BTC Markets, she made a decision to write to clients.
“We were quick to communicate with our clients and partners that we had zero exposure to FTX or the FTT token,” Ms Bowler told InvestorDaily.
“Providing our clients with peace of mind that their assets were secure on our platform was our number one priority,” she said.
“Clients want authoritative information regarding how we manage customer assets and our own business. To provide transparency and further peace of mind, we are working with an external auditor to provide proof of reserve reporting.”
While BTC Markets may have no exposure to FTX or the FTT token, in recent weeks, the exchange has found itself doubling down on transparency and assurance.
Independent financial auditing firm, JTP Assurance recently issued a statement verifying that BTC does not have any external debt or other significant liabilities. The FTX event also made them pause the launch of digital asset Solana, which was due to launch on the exchange.
“As a Blockchain Australia-certified digital currency exchange, we also co-signed the affirmation statement released on 22 November further committing to industry best practices outlined in their code of conduct,” Ms Bowler said.
BTC Markets remains supportive of digital assets like Bitcoin and says the FTX collapse was not a crypto issue.
“The problem is not with Bitcoin or cryptocurrency, the problem is with human behaviour,” said Ms Bowler, who worked in Dublin and Singapore for Merill Lynch in 2008.
“My background coming into crypto had been from traditional finance, and having sat through the GFC, I knew the importance of proper governance and regulation,” she said.
“That’s why we do things differently. Our exchange has always had a reputation for being conservative and low-risk. We don’t offer the same products as other exchanges, and we don't conduct ourselves in the same way.”
In Australia, crypto is now the second most popular investment product behind Aussie equities. In November 2021, ASIC surveyed over 1,000 Australian investors and found 44 per cent of them held crypto-assets (73 per cent held Australian shares).
The vast majority (80 per cent) of Australian crypto investors don’t view it as a risky investment.
Asked whether she believes crypto was a risky investment, Ms Bowler said all investments carry some degree of risk.
“This was apparent in the dotcom bust of 2000 and the GFC in 2008,” she said.
“The inherent volatility of the crypto market is what attracts traders. As institutions and retail start adopting crypto, this volatility may reduce over time.”
