CySEC Extends Suspension Of FTX.com’s License Until May 2025
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The Cyprus Securities and Exchange Commission (CySEC) announced that it will keep the suspension of FTX.com’s license. This license lets FTX operate in Europe, and it will stay suspended until May 30, 2025.
According to a letter from CySEC, FTX EU cannot offer any services or work with new clients while the suspension is in effect. The company also cannot carry out any orders from clients who want to buy financial products.
CySEC Aims To Ensure Compliance
FTX EU cannot give any investment help, either in Cyprus or anywhere else. It is not allowed to call itself an investment services provider or share any advertisements about its services.
FTX EU must also close all open positions related to clients’ contracts when they reach their due date or if clients ask them to. FTX must return any money and profits to its clients.
Back in 2022, the main regulator in Cyprus told FTX Europe to stop its operations. They wanted FTX to take quick action to protect investors. The exchange had one month to fix issues the regulator found regarding the protection of client assets and how suitable the management was.
The Cyprus branch of FTX, called FTX Europe, was one of the companies in the FTX Group that filed for bankruptcy. This happened after the exchange, led by Sam Bankman-Fried, collapsed in a big way. In December, CySEC decided to extend the suspension of FTX.com’s license until March 31.
CySEC first gave its permission to FTX in September 2022. This allowed the exchange to start its cryptocurrency service across Europe.
CySEC Wants To Safeguard Client Funds And Facilitate Withdrawals
In the U.S., a bankruptcy court has allowed FTX’s liquidators to start selling four working subsidiaries. These include FTX Japan and FTX Europe, along with other businesses like the custody platform Embed and the crypto derivatives exchange LedgerX. There have been many people interested in these businesses, with 117 expressions of interest reported.
Even though the bankruptcy process could last a long time, a group representing FTX’s creditors is focused on selling some parts of the business quickly. They believe that these companies have strong financial health, good management, and valuable brands, but they risk losing value if they do not get sold soon.
The extension of the suspension happened even after FTX EU said it had started a way for customers to ask for their final balances. This will allow clients to withdraw their fiat money from the company’s special client accounts.
FTX said that customers need to check their balances and then submit requests to withdraw their money through a special website set up just for this purpose, called ftxeurope.eu.
