Cypriot regulator extends suspension of FTX license until end-Sep 2023

The Cyprus Securities and Exchange Commission (CySEC) announces an extension of the suspension of the Cyprus investment firm (CIF) authorisation of FTX (EU) Ltd until September 30, 2023.

The suspension of FTX’s CIF license was initially announced on November 11, 2022, as FTX and a number of its subsidiaries filed for Chapter 11 bankruptcy in the United States.

The suspension was subsequently extended until March 31, 2023.

CySEC explains that the latest extension should allow the crypto firm 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.

While the suspension of the authorisation is in force, as provided for in section 9 of DI87-05, FTX EU is not permitted to:

• Provide/carry out investment services/activities.
• Enter into any business transaction with any person and accept any new clients.
• Advertise itself as a provider of investment services.

The company, however, as long that this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05:

• Complete all its own transactions and those of its clients which are before it, in accordance with client instructions.
• Return all funds and financial instruments which are attributable to its clients.