CySEC Extends FTX EU’s License Suspension To September
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The Cyprus Securities and Exchange Commission (CySEC) has extended the license suspension of the locally regulated subsidiary of the now-defunct cryptocurrency exchange, FTX. With parent company’s executives facing jail time and senators seeking answers, the FTX EU’s quest for compliance amidst turbulent waters promises a gripping narrative.
FTX Seeks To Ensure Regulatory Compliance And Financial Stability
An announcement was recently made that FTX (EU) Ltd will stop operating until 30 September 2024. This is the second time the regulatory body has stopped the company from operating. The first time was in November 2022 and since then the regulators have not approved the company the license to operate.
FTX’s European subsidiary got the thumbs up from Cyprus last March and got full permission to be a CIF in September.
Even though the Cyprus license didn’t let the exchange offer crypto directly, it could still offer other types of products. Moreover, having the license was important because it could be used to offer services in all of the European Economic Area.
Even though FTX EU is having money troubles in bankruptcy proceedings, the notice from the Cypriot regulatory suggests that while the license has ceased, the exchange can’t carry out investment activities. It also can’t give investment services, do business with anyone, get new clients, or offer investment services in its ads.
FTX and lots of its affiliates said they couldn’t pay their bills in November 2022 in the United States. This happened a few days after the shady business deal of its former boss, Sam Bankman-Fried, was unveiled.
Response And Investigation Into Bankman-Fried’s Actions
Bankman-Fried has been in the news in the crypto industry for his fraudulent activities and subsequent charge.
He was accused of several criminal activities and has been sentenced to jail for 25 years. Last week, Bankman-Fried’s lawyers said they will appeal the decision.
Many other big bosses from FTX and its affiliate company, Alameda Research, pleaded guilty to criminal and civil charges and now awaiting to see what happens next. They all testified against Bankman-Fried in court.
At the same time, two US senators, Chuck Grassley and Elizabeth Warren, asked for more information about the conversations between Bankman-Fried and the Chairman of the CFTC, Rostin Behnam. The enquiry for more details about both party’s communication was asked before the crypto exchange collapsed.
While its parent company is facing a complete extinction, FTX EU is looking at its options to sustain its business independent of the
