CySEC Extends Suspension of FTX EU's CIF License to March 2023

The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of the Cyprus Investment Company (CIF) licence of FTX (EU) Limited, the Cyprus subsidiary of bankrupt cryptocurrency exchange FTX, to March 31, 2023, said in a statement released on Thursday (Dec. 22, 2022).

The regulator made the decision on Monday (Dec. 19, 2022), aiming to allow the subsidiary "to proceed with the necessary actions in order to comply with the relevant provisions of the Investment Services and Activities and Regulated Markets Law of 2017".

According to this suspension order, the company shall not provide or carry out any investment services or activities during this period, enter into any business transactions with any person and accept any new clients, nor shall it advertise itself as a provider of investment services.

However, the firm could complete its own transactions and those of its clients which are before it, in accordance with client instructions, and could return all funds and financial instruments which are attributable to its clients, subject to the wishes of its existing customers.

Earlier, Japan's Kanto Local Finance Bureau​ had extended the suspension of FTX Japan from December 9 2022 to March 9, 2023. The Australian Securities and Investments Commission (ASIC)​ also suspended the licence of FTX's Australian subsidiary in mid-November until May 15, 2023.

More recently, Sam Bankman-Fried, the founder of FTX, was arrested in the Bahamas on Dec. 13 for suspected fraud. The former FTX executive is now facing a number of charges by US regulators. Fazzaco will continue to follow up on this case.