- The Cyprus Securities and Exchange Commission (SEC) has prolonged the suspension of FTX Europe’s license, preventing the firm from operating until September 2024.
- FTX Europe is mandated to take necessary steps to comply with the relevant regulations outlined in The Investment Services and Activities and Regulated Markets Law.
- The regulatory decision bars FTX Europe from offering investment services, conducting business transactions, or accepting new clients. Additionally, advertising investment services is prohibited.
- However, FTX Europe is obliged to fulfill all pending transactions and return funds and financial instruments belonging to its clients upon request.
Regulatory Suspension Continues: The Cyprus Securities and Exchange Commission (SEC) has extended the suspension of FTX Europe’s license, further delaying the resumption of its operations until September 2024. This decision marks another setback for the former components of the FTX empire, as they grapple with regulatory scrutiny and legal challenges.
The announcement, made by Cyprus’ securities regulator on April 16, underscores the imperative for FTX Europe to adhere to the stipulations outlined in The Investment Services and Activities and Regulated Markets Law. Compliance with these regulations is paramount for the company to potentially regain its license and resume business activities.
Impact on FTX Europe: The regulatory directive imposes significant limitations on FTX Europe’s operations. The firm is prohibited from providing investment services, engaging in business transactions, or accepting new clients. Moreover, any promotional activities related to investment services are forbidden, further constraining the company’s ability to attract new business.
Despite these restrictions, FTX Europe is obligated to fulfill its existing obligations to clients. This includes completing pending transactions and returning all funds and financial instruments attributable to its clients upon their request. Such measures aim to safeguard the interests of investors amid the regulatory upheaval surrounding FTX Europe and its former affiliates.