The Cyprus Securities and Exchange Commission has extended its suspension on FTX Europe’s investment firm license, banning the crypto exchange from offering services or accepting any new clients.
In a notice published on Nov. 5, Cyprus regulators announced that they have extended the suspension on FTX EU by another six months. This is the fourth time the Cyprus agency has extended its suspensions on FTX EU since the initial suspension on Nov. 11, 2022, which is around the same time FTX in the U.S collapsed.
Until the suspension is lifted, currently set to May 30, 2025, the firm is banned from carrying out investment services or activities, taking part in new business transactions, accepting new clients and promoting itself as an investment service.
Though, the agency does give FTX EU permission to complete its transactions and return funds and financial instruments to clients.
According to the notice, the Cyprus SEC has extended FTX EU’s suspension in order to give the firm time to move forward with the steps needed to comply with the investment and regulated markets laws that are currently in place.
Due to the suspension, FTX Europe’s website does not offer any trading options, instead it only lets users log in to see their balance or request a withdrawal.
After the FTX declared bankruptcy in November 2022, Cyprus SEC suspended FTX Europe’s license due to the “suitability of the members of the management body” and the need to safeguard client assets.
FTX Europe was originally a Swiss startup company named Digital Assets AG, before it changed its name when FTX acquired it for $323 million in 2021.
According to a Reuters report, FTX’s restructuring team tried to gain back some of the funds spent on acquiring FTX Europe, stating that the price was a “massive overpayment,” though they ended up settling the dispute by selling FTX Europe back to its original founders for $32.7 million, only slightly more than 10% of its acquisition price.
Shortly after being green lit by Cyprus SEC in 2022, FTX EU opened a regional headquarters in Cyprus alongside its main headquarters in Switzerland.
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