While regulators around the world are seizing the FTX affair, the platform is on the verge of losing its European license obtained only two months ago in Cyprus.
FTX risks losing its license in Europe
Against the background of the difficulties encountered by its platform, FTX is reportedly about to lose its regulatory license in Europe. This eventuality is all the more significant in that it occurs barely two months after its issuance. Indeed, it had been obtained in Cyprus from the Cyprus Securities and Exchange Commission (CySEC).
This license covers the whole of the European Union as well as Norway, Iceland and Liechtenstein. But the failings revealed in the ongoing crisis led CySEC members to reconsider their position according to Bloomberg. Thus, deliberations are in progress, and this radiation could be effective as of today.
The situation is all the more ironic since at the time, Sam Bankman-Fried (SBF) displayed the ambition to make its platform one of the most regulated exchanges in the world :
“Obtaining this license in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world. »
As we have seen recently with a PSAN, it is true that no license is final and that it can be withdrawn at any time by the financial policeman of a State if the legal conditions are not met. Nevertheless, such a measure would be totally unprecedented, with regard to a player as big as FTX.
👉 On the same subject – Japan, United States, Europe… Regulators of all persuasions begin to crack down on FTX
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