The Cyprus Securities and Exchange Commission has announced it has extended the Cyprus Investment Firm (CIF) authorization suspension on FTX (EU) Limited, the European subsidiary of the collapsed crypto exchange FX’s, until 31 March 2023.
The decision to extend it was taken on 19 December, according to the filing. CySEC explained that the suspension of the Bahamas-headquartered company’s license aims to allow it “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”.
The Cypriot regulator initially suspended the license of the crypto exchange on 11 November 2022 following its collapse. This came only two months after FTX obtained approval from the Cyprus financial market regulator allowing it to offer company products and services to European clients.
CySEC noted that during the suspension, the exchange is not permitted to offer or carry out investment services in the country or enter into any business transaction with any person and accept any new client. Furthermore, FTX is not permitted to advertise itself as an investment services provider.
However, while its authorization is suspended, the regulator allows the company to complete “its own transactions and those of its clients which are before it, in accordance with client instructions.” FTX is also permitted to return all funds and financial instruments that belong to clients.
Meanwhile, the founder and former CEO of the exchange is now facing criminal charges for his role in its collapse, along with top execs, the former Alameda Research CEO and the former FTX CTO who plead guilty.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.