FTX Has European License Suspended by CySEC

Cryptocurrency exchange FTX has had its license in Cyprus suspended by the jurisdiction's securities regulator following a liquidity crunch that prompted a withdrawal freeze, reportedly.

FTX secured approval for its domain www.ftx.com/eu from the Cyprus Securities and Exchange Commission (CySEC) in March after acquiring local firm K-DNA Financial Services LTD. The entity was later re-named FTX EU LTD. In September, FTX EU said it had secured a CySEC license to operate as a Cyprus investment firm.

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The exchange said at the time that the CySEC license enabled it to "serve the whole European Economic Area" which includes the EU as well as Iceland, Liechtenstein and Norway.

After a liquidity crunch triggered the collapse of the multi-billion dollar crypto enterprise, headquartered in the Bahamas, it had its assets frozen by the country's securities regulator on Thursday as the regulator aims to "preserve assets and stabilize the company."

Shortly before, the Financial Services Agency, or FSA, of Japan has requested FTX Japan suspend business orders​.

(Source: CoinDesk)