News

FTX License Suspension Extended by Cyprus SEC Until May 2025

Key Points:

  • The Cyprus SEC has suspended FTX.com’s CIF license until May 30, 2025.
  • FTX EU is banned from providing services, accepting new clients, or executing any financial transactions during the suspension.
The Cyprus Securities and Exchange Commission announced that the Cypriot Investment Firm (CIF) FTX license suspension would be considered further until May 30, 2025.

Cyprus SEC Extends FTX License Suspension Until May 2025

FTX license suspension is yet another decision demonstrating continuous regulation pressure on FTX, which was once one of the leading participants in the crypto market in Europe before its bankruptcy.

According to the regulatory notice published by CySEC, the above suspension is extended, and FTX license suspension means the troubled firm is strictly prohibited from providing services and establishing new business relationships. The firm is also not allowed to accept new clients. It is also barred from executing customer instructions related to the purchase of financial instruments, which means the troubled firm is not allowed to offer investment services either in Cyprus or abroad.

Read more: FTX Bankruptcy Plan Guarantees Full Repayment with Interest

Impact of FTX Suspension on Customer Fund Withdrawals

FTX EU and its suspended brands must cease promoting themselves as providers of investment services and distributing similar advertisements. They are to be ordered to close all the open positions associated with customer contracts at expiration or by customer request and ensure that the clients receive their funds and profits, if any, in the shortest time.

Although FTX license suspension had announced a tentative process whereby clients might request their final balances and withdraw fiat money from their isolated accounts, the extension of the suspension by CySEC shows the gravity of the regulatory concerns related to the firm’s operation. It’s an extension that indicates not only how the operation cannot be allowed to function currently but, to a wide extent, serves notice to the market at large that regulators will have a very conservative approach toward cryptocurrency exchanges regarding strict compliance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

16 minutes ago

Best Cryptos to Buy: Qubetics Set to Rise, Bitcoin Knocks at $100k Milestone, Avalanche to Release 1.67M Tokens

Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…

31 minutes ago

Ike Goes Live on Mainnet: Unlocking Liquid Staking on Aleph Zero

London, United Kingdom, 21st November 2024, Chainwire

1 hour ago

Native USDC on Aptos Coming Soon to Boost DeFi and P2P Transactions

The move will see developers utilize USDC on Aptos in creating dApps on a wide…

1 hour ago

Coinshift Launches csUSDL, Announces Strategic Partnerships

Abu Dhabi, UAE, 21st November 2024, Chainwire

2 hours ago

Strategic Bitcoin Reserve Driven by 5-Year Commitment to Buy BTC

Senator Cynthia Lummis outlined the Strategic Bitcoin Reserve, which will sell part of the Fed's…

2 hours ago

This website uses cookies.