FTX Cyprus License Suspended Through March 2023

According to a regulatory circular, FTX EU cannot supply any services, engage in any commercial relationships, or accept new customers while the authorization suspension is in effect.

Furthermore, the company is not permitted to execute client orders for the purchase of financial instruments or to offer investment services in or outside of Cyprus. Furthermore, the suspended brand is not authorized to market itself as a supplier of investment services or to run associated commercials. They must also cancel any open positions related to customer contracts on the maturity date or at the client's request, as well as repay any monies and profits.

Earlier in November, the Cypriot top regulator had requested FTX Europe to “halt its activities and to start quickly with a series of procedures for the safety of the investors”. The Cyprus division, known as FTX Europe, was among the FTX Group entities that declared bankruptcy last week, after the catastrophic collapse of the Sam Bankman-led exchange. Earlier this year, the corporation was valued at $32 billion, and it announced that its crypto trading arm, Alameda Research, and US subsidiary, FTX.us, as well as 130 other sister businesses, are part of the bankruptcy proceedings.

Here is the article in which FTX declares bankruptcy: https://www.wikifx.com/en/newsdetail/202211127784561416.html

In September, CySEC gave FTX authorization to establish its bitcoin business over the whole European Economic Area. The action comes as the financial markets regulator considers whether more limits on retail crypto trading are needed.

The Cypriot license requires the company to conform to high financial criteria outlined in the MiFID II framework, such as client money segregation and protection, complete transparency of its business activities, and capital adequacy measures.

In 2021, the regulator released a policy statement outlining the exact conditions for crypto companies seeking registration on the CASP registry. This registry is open to the public and contains information like as the cryptocurrency firm's name, legal form, address, and services.

The regulation also included a definition for cryptocurrency assets that goes somewhat beyond their typical legal standing.

Meanwhile, the CySEC has gone above and beyond the requirements of the fifth directive in order to put new activities, which are not covered by AMLD5, within the AML/CFT duties.

Stay tuned for more about FTX news.

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