CySEC Extends Suspension of FTX License Again

Cyprus Securities And Exchange Commission (CySEC) announced today that it has decided to suspend the authorisation of FTX (EU) Ltd, the Cyprus Investment Firm (CIF) and the European unit of the failed crypto exchange FTX, until September 30, 2023.

In November 2022, FTX has had its license in Cyprus suspended following a liquidity crunch that prompted a withdrawal freeze. In late December​, the Cypriot financial regulator has extended the suspension to March 31, 2023.

CySEC explained that the latest move was made to bring FTX (EU) Ltd to proceed with the necessary actions to abide by the relevant provisions of The Investment Services and Activities and Regulated Markets Law of 2017.

As long as the suspension of the authorisation is in force, FTX (EU) Ltd is not permitted to provide or carry out investment services/activities, nor can it enter into any business transaction with any person and accept any new client.

The watchdog added that during this period, provided this is consistent with the wishes of its existing clients, the entity may complete all its own transactions and those of its clients which are before it, in accordance with client instructions, and return all funds and financial instruments which are attributable to its clients.

At the end of last month, Fazzaco reported that FTX (EU) Ltd has created a new website​ dedicated to customers withdrawing their balances from the platform. The domain name, https://ftxeurope.eu/, has been approved by the CySEC. The new website reportedly don’t provide any other services other than balance withdrawal.