Key Insights
- CySEC has extended the suspension of the authorization of the Cyprus Investment Firm FTX (EU) Ltd until September 30, 2024.
- During the suspension period, FTX (EU) Ltd is prohibited from providing investment services
- The CySEC’s decision to prolong the suspension is aimed at protecting investors and the integrity of the Cypriot financial system
Nicosia (MarketsXplora) – The Cyprus Securities and Exchange Commission (CySEC) has announced that the suspension of the authorization of the Cyprus Investment Firm FTX (EU) Ltd will be extended until September 30, 2024, allowing the company to take the necessary actions to comply with the relevant laws and regulations.
The suspension of FTX (EU) Ltd’s license was initially announced in November 2022, after the cryptocurrency exchange and a number of its subsidiaries filed for Chapter 11 bankruptcy in the United States.
Under the terms of the extended suspension, FTX (EU) Ltd is not permitted to provide or carry out investment services and activities, enter into any business transactions with new clients, or advertise itself as a provider of investment services.
However, the company will be allowed to complete all existing transactions and return all funds and financial instruments belonging to its clients.
“The extension of the suspension of FTX (EU) Ltd’s authorization is a necessary step to ensure the protection of investors and the integrity of the Cypriot financial system,” said Nikos Georgiades, the Chairman of CySEC.
“This decision will give the company the time it needs to address the issues that led to the initial suspension and bring itself into full compliance with The Investment Services and Activities and Regulated Markets Law of 2017,” Georgiades added.
The suspension of FTX (EU) Ltd’s CIF license is part of the broader fallout from the collapse of the FTX cryptocurrency exchange, which sent shockwaves through the digital asset industry and led to regulatory scrutiny in jurisdictions around the world.
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The extended suspension period will give FTX (EU) Ltd the opportunity to work towards resolving the issues that led to the initial license revocation and demonstrate its ability to operate within the bounds of Cypriot financial regulations.