The Cyprus Securities and Exchange Commission
(CySEC) has extended the suspension of the authorization of FTX (EU) Ltd until
March 31, 2024. This decision is in response to the market instability caused
when FTX and several of its subsidiaries filed for Chapter 11 bankruptcy in the
United States.
In an official statement published by CySEC on its
website, during the suspension period, FTX is permitted to execute all
transactions initiated by its clients based on their instructions. This
provision ensures that existing clients are not affected while FTX navigates
its regulatory challenges.
CySEC said: “For as long as the suspension of
the authorization is in force, as provided for in section 9 of DI87-05, FTX
(EU) Ltd is not permitted to provide or carry out investment services or
activities, enter into any business transaction with any person and accept any
new client, or advertise itself as a provider of investment services.”
However, FTX is authorized to return all funds that
are attributable to its clients. This ensures that clients’ assets are
safeguarded and can be accessed should they choose to withdraw them, the regulator explained.
In April, CySEC announced the extension of the suspension of FTX EU’s authorization until the end of September 2023.
This license suspension began on November 11, 2022, following the bankruptcy
filings of FTX.com, Alameda Research, and more than 130 affiliated entities.
FTX EU, headquartered in Switzerland, secured a
license from CySEC in March 2022, enabling it to offer derivative products and
other services in the European Economic Area (EEA).
Dr. George Theocharides, the Chair of CySEC , stated:
“Safeguarding the interests of investors is of paramount importance, and
CySEC will continue to hold FTX EU Ltd to account to ensure all withdrawal
requests are processed swiftly and appropriately.”
FTX EU’s Regulatory Process
FTX had initially secured approval for its domain,
www.ftx.com/eu, after acquiring K-DNA Financial Services LTD.
Subsequently, the platform was rebranded as FTX EU LTD. In September, FTX EU
announced that it had obtained a license to operate as a Cyprus investment firm
from CySEC.
In April, FTX EU launched a dedicated website to
allow its customers to request final fiat balances and withdrawals in
accordance with MiFID II regulations. Upon the confirmation of balances, eligible
customers could proceed to withdraw their fiat currency balances from
segregated accounts through the ftxeurope.eu website, Finance Magnates
reported.
The Cyprus Securities and Exchange Commission
(CySEC) has extended the suspension of the authorization of FTX (EU) Ltd until
March 31, 2024. This decision is in response to the market instability caused
when FTX and several of its subsidiaries filed for Chapter 11 bankruptcy in the
United States.
In an official statement published by CySEC on its
website, during the suspension period, FTX is permitted to execute all
transactions initiated by its clients based on their instructions. This
provision ensures that existing clients are not affected while FTX navigates
its regulatory challenges.
CySEC said: “For as long as the suspension of
the authorization is in force, as provided for in section 9 of DI87-05, FTX
(EU) Ltd is not permitted to provide or carry out investment services or
activities, enter into any business transaction with any person and accept any
new client, or advertise itself as a provider of investment services.”
However, FTX is authorized to return all funds that
are attributable to its clients. This ensures that clients’ assets are
safeguarded and can be accessed should they choose to withdraw them, the regulator explained.
In April, CySEC announced the extension of the suspension of FTX EU’s authorization until the end of September 2023.
This license suspension began on November 11, 2022, following the bankruptcy
filings of FTX.com, Alameda Research, and more than 130 affiliated entities.
FTX EU, headquartered in Switzerland, secured a
license from CySEC in March 2022, enabling it to offer derivative products and
other services in the European Economic Area (EEA).
Dr. George Theocharides, the Chair of CySEC , stated:
“Safeguarding the interests of investors is of paramount importance, and
CySEC will continue to hold FTX EU Ltd to account to ensure all withdrawal
requests are processed swiftly and appropriately.”
FTX EU’s Regulatory Process
FTX had initially secured approval for its domain,
www.ftx.com/eu, after acquiring K-DNA Financial Services LTD.
Subsequently, the platform was rebranded as FTX EU LTD. In September, FTX EU
announced that it had obtained a license to operate as a Cyprus investment firm
from CySEC.
In April, FTX EU launched a dedicated website to
allow its customers to request final fiat balances and withdrawals in
accordance with MiFID II regulations. Upon the confirmation of balances, eligible
customers could proceed to withdraw their fiat currency balances from
segregated accounts through the ftxeurope.eu website, Finance Magnates
reported.
