Another Extension: CySEC Suspends FTX EUs License until September

The Cyprus Securities and Exchange Commission (CySEC) has yet again extended the suspension of the license of FTX (EU) Ltd, the locally regulated subsidiary of the now-collapsed cryptocurrency exchange.

The Suspension of FTXs EU License

Announced today (Tuesday), the latest license suspension will last until 30 September 2024. The license of the EU unit of FTX was originally suspended in November 2022. Since then, the regulator has extended the suspension multiple times.

The European entity of FTX initially gained approval from the Cyprus regulator last March and obtained full authorization as a CIF in September. Though the Cypriot license did not allow the exchange to offer crypto directly, it could provide derivative products. Additionally, the license was essential as the exchange can passport it to provide services within the entire European Economic Area.

Although FTX EU is already undergoing bankruptcy proceedings, the Cypriot regulatory notice highlighted that, as long as the license is suspended, the exchange cannot provide/carry out investment services/activities, enter into any business transaction with any person, and accept any new client; nor advertise itself as a provider of investment services.

Fall of a Crypto Empire

FTX and over a hundred of its affiliates filed for bankruptcy in November 2022 in the United States, days after the shady business practices of its former CEO, Sam Bankman-Fried, surfaced. Bankman-Fried, once recognized as a crypto billionaire, was convicted of multiple criminal charges and has been sentenced to jail for 25 years. Last week, the lawyers of Bankman-Fried appealed against the sentencing and conviction.

Multiple other top bosses of FTX and its affiliate, Alameda Research, pleaded guilty to civil and criminal charges and are now awaiting sentencing. All of them testified against Bankman-Fried in the trial.

Meanwhile, two US senators, Elizabeth Warren and Chuck Grassley, recently demanded a full accounting of the interactions between the Chairman of the CFTC, Rostin Behnam, and Bankman-Fried, concerning the nature of their relationship before the collapse of the crypto exchange.

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Exclusive: FTX Europe Launches New Website for Customer Balance Withdrawal

<p class="MsoNormal">FTX Europe, the European subsidiary of bankrupt cryptocurrency exchange, FTX, has created a new website for its customers to withdrawal their balance from the platform. The new domain name, https://ftxeurope.eu/, was approved by the Cyprus Securities and Exchange Commission (CySE).</p><p class="MsoNormal">Finance Magnates learned the new domain will offer no products or any other services apart from balance withdrawal.</p><p class="MsoNormal">"Please be informed that our new domain, www.ftxeurope.eu, has been approved by our regulator CySEC as you have well identified. The website will only be used for all FTX EU LTD clients to be able to claim their FIAT balances. There will be no services or products offered via this website," FTX Europe told Finance Magnates via email. </p><p class="MsoNormal">Finance Magnates' check on the new domain brings up a dialogue box asking users to "log in to your FTX EU account in order to see your balance and to request a withdrawal." On the other hand, www.ftx.com/eu remains unresponsive at this time.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">FTX EU, a solvent entity, is now paying out its customers on <a href="https://t.co/MEw8Oz8vTk">https://t.co/MEw8Oz8vTk</a>.Note: Almost none of FTX's EU citizens are FTX EU users, because for some reason, FTX EU only onboarded customers registered from March 2022. <a href="https://t.co/gu56Vysvlc">pic.twitter.com/gu56Vysvlc</a></p>— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) <a href="https://twitter.com/AFTXcreditor/status/1641481931614289920?ref_src=twsrc%5Etfw">March 30, 2023</a></blockquote><p class="MsoNormal">Finance Magnates' check on CySEC's public register shows https://ftxeurope.eu is an approved domain owned by FTX EU. </p><p class="MsoNormal">Finance Magnates also found that CySEC earlier this month modified the public profile of FTX EU on its register. As of press time, the Cypriot regulator is yet to response to request for a comment.</p><p class="MsoNormal">FTX Europe Faces CySEC Suspension</p><p class="MsoNormal">FTX EU, which is headquartered in Switzerland and has regional headquarters based in Cyprus, <a href="https://www.financemagnates.com/cryptocurrency/news/ftx-gains-cysec-license-to-offer-regulated-crypto-products-in-europe/" target="_blank" rel="follow">first gained CySEC approval</a> in March 2022 to offer regulated cryptocurrency products in Europe. The company had announced it would provide its services through the domain ftx.com/eu. FTX EU was previously K-DNA Financial Services Limited but was renamed after acquisition by the cryptocurrency exchange.</p><p class="MsoNormal">However, in the aftermath of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">the collapse of FTX</a> in November last year, <a href="https://www.financemagnates.com/cryptocurrency/ftxs-cysec-license-suspension-likely-to-start-wider-regulatory-audits/" target="_blank" rel="follow">CySEC suspended the operating license</a> of FTX EU which obtained full authorization as a Cyprus Investment Firm (CIF) two months earlier. The CIF license enables FTX EU to offer crypto derivatives products and not direct exchange of digital assets. </p><p class="MsoNormal">CySEC said it suspended the subsidiary’s license for violations of the country’s regulated markets laws by having unsuitable members on its Management Board and not meeting the organization's requirements for safeguarding clients’ assets. Additionally, the regulator explained that the decision was taken “for the protection of investors and the orderly operation of the market,” and gave the subsidiary firm one month to take necessary actions to comply with the provisions.</p><p class="MsoNormal">However, in late December, <a href="https://www.financemagnates.com/cryptocurrency/cysec-extends-ftx-eus-cif-license-suspension-to-march-2023/" target="_blank" rel="follow">CySEC extended the suspension</a> of FTX EU’s license to March 2023, in order to allow the subsidiary 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.”</p><p class="MsoNormal">Announcing the extension, CySEC said the subsidiary could “complete all its own transactions and those of its clients which are before it, in accordance with client instructions.” Moreover, the firm could return all funds and financial instruments belonging to clients, the regulator added. </p><p class="MsoNormal">Finance Magnates’ check on the CySEC register shows that the FTX EU Limited license is still under suspension. </p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Bybit Strengthens Regulation with New Cyprus License

Bybit, a cryptocurrency exchange, has obtained a new license from the Cyprus Securities and Exchange Commission (CySEC) that will allow it to operate as a crypto exchange and provide custody services.

Bybit Gains CySEC License

According to the regulator's registry, the license was awarded to UAB Onlychain Fintech Limited, a Lithuanian company, on May 2023.

Officially announced today (Monday), the new license will allow Bybit to offer a full suite of services, including trading between crypto pairs and fiat currency pairs, financial services related to crypto assets, and custody solutions.

"At Bybit, we wholeheartedly support the regulatory objective of building a cryptocurrency industry that is both compliant, secure, and transparent, ultimately benefiting all those seeking financial freedom," said Bybit's Co-Founder and CEO, Ben Zhou.

"This landmark is a testament to Bybit's commitment to adhering to robust regulatory frameworks while expanding our global presence. We look forward to bringing the Crypto Ark to Cyprus."

Crypto Firms Are Focused on Regulations

The Cypriot license arrived less than a month after Bybit received 'in-principle' approval from the regulator in Kazakhstan to operate in the country. Earlier this year, Bybit opened its headquarters in Dubai, where it received an 'in-principal' approval for a cryptocurrency license.

Initially, Bybit was established as a crypto derivatives exchange. However, it expanded its services by adding spot trading in 2021 and added options trading last year. It has become one of the top venues for sport and derivatives crypto exchange, according to Coinmarketcap.

Although Bybit is pushing to become a regulated crypto exchange venue, it is facing backlash in some jurisdictions. Bybit is one of the many names that shuttered operations in Canada due to the country's stringent rules around crypto. Regulators in Spain and Japan also warned against Bybit, calling it an illegal crypto exchange, Finance Magnates reported. It also exited the United Kingdom.

While several top crypto exchanges made Cyprus their European base, some top ones are now evaluating their options. Binance recently announced its decision to deregister its Cyprus entity. On top of that, the EU arm of FTX was regulated in Cyprus. However, its license was suspended following the fiasco when FTX's operations blew out.

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European Central Bank Exec Wants Unbacked Crypto Treated as Gambling

<p class="MsoNormal">Fabio Panetta, a Member of the Executive Board of the European Central Bank (ECB) has argued in favor of regulation that recognizes “the speculative nature of unbacked cryptos and treat them as gambling activities.” </p><p class="MsoNormal">Panetta believes that “vulnerable” users of unbacked digital assets can be protected through the application of rules similar to the European Commission-recommended principles for online gambling. The ECB executive stated these in <a href="https://www.ecb.europa.eu/press/blog/date/2023/html/ecb.blog230105~75d5aee900.en.html" target="_blank" rel="follow">a blog post</a> posted on the ECB’s page on Thursday. </p><p class="MsoNormal">The European Commission recommendations of 2014 <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014H0478" target="_blank" rel="follow">published</a> in the Official Journal of the European Union (EU) seeks to protect consumers and players of online gambling services. In addition, it seeks to prevent minors from gambling online. </p><p class="MsoNormal text-align-justify">ECB's Fabio Panetta Criticizes Unbacked Crypto Assets</p><p class="MsoNormal">In the post, Panetta described unbacked digital assets as “a gamble disguised as an investment asset,” adding that “they do not perform any socially or economically useful function.” </p><p class="MsoNormal">“As a form of investment, unbacked cryptos lack any intrinsic value, too. They are speculative assets. Investors buy them with the sole objective of selling them on at a higher price,” the <a href="https://www.financemagnates.com/tag/ecb/" target="_blank" rel="follow">ECB</a> executive explained.</p><p class="MsoNormal">Meanwhile, Panetta noted that the European Union’s Regulation on Markets in Crypto-Assets (MiCA) “is an important step” towards cryptocurrency regulation. However, he called for more efforts to regulate other segments of the cryptocurrency industry such as decentralized finance.</p><p>Check the recent FMLS22 session on how the market structure of digital assets is changing.</p><p class="MsoNormal text-align-justify">CySEC, MiCA and Crypto Speculation</p><p class="MsoNormal">In October last year, Dr George Theocharides, the Chairman of the Cyprus Securities and Exchange Commission (CySEC) <a href="s" target="_blank" rel="follow">warned against the risks</a> associated with cryptocurrency investments and endorsed MiCA. Moreover, the CySEC boss decried the speculative nature of digital assets in <a href="https://www.cysec.gov.cy/en-GB/investor-protection/financial-education/news-publications/93338/?uuid=18102022115542" target="_blank" rel="follow">a piece</a> published on the regulator’s website.</p><p class="MsoNormal">“Many crypto-assets have no tangible value – contrary to traditional securities, such as stocks or bonds – resulting in their value and price depending exclusively on supply and demand which in most crypto-assets can be highly speculative. This may lead to high volatility of prices and investors suffering large losses,” the CySEC Chairman wrote.</p><p class="MsoNormal">Meanwhile, Finance Magnates reports that while MiCA seeks to put an end to the ‘crypto wild west’ in Europe, the proposed regulation, when finally passed, must first drive uniformity across <a href="https://www.financemagnates.com/cryptocurrency/can-mica-take-europe-to-the-crypto-promised-land/" target="_blank" rel="follow">Europe’s fragmented digital asset landscape</a>.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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FTX's CySEC License Suspension Likely to Start Wider Regulatory Audits

<p>The Cyprus Securities and Exchange Commission (CySEC) has suspended the license of FTX (EU) Ltd, a Cyprus Investment Firm (CIF) which gained authorization two months ago. While this might be only for one company, there might be a wider implication for the industry.</p><p>"No doubt this is not going to be isolated to one company – FTX," Muinmos' Founder and CEO, Remonda Kirketerp-Møller told Finance Magnates. "There are quite a few regulators in Europe ‘revoking’ many crypto registrations due to lack of governance. These are rarely made public unless it’s a situation like this. We hope more audits and controls are taking place by regulators to ensure the stability of the market and secure investor protection."</p><p>The suspension came when the troubled parent of the EU subsidiary, FTX.com, nearly collapsed in merely days. The global exchange and more than 130 affiliates, including FTX US and Alameda Research, <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/" target="_blank">filed for Chapter 11 bankruptcy</a> in the United States. Its CEO, Sam Bankman-Fried, also stepped down.</p><p>Only four of <a href="https://www.financemagnates.com/tag/ftx/" target="_blank">FTX</a> affiliates, FTX Digital Markets, FTX Australia, FTX Express Pay and LedgerX (operating as FTX US Derivatives), were not included in the bankruptcy filing.</p><p>To add to the troubles of FTX, the exchange was <a href="https://www.financemagnates.com/cryptocurrency/ftx-hacked-1bn-drained-from-ftx-and-ftx-us-accounts-so-far/" target="_blank">reportedly hacked over the weekend</a>, draining at least $1 billion worth of cryptocurrencies.</p><p>European Business</p><p>FTX initially gained <a href="https://www.financemagnates.com/cryptocurrency/news/ftx-gains-cysec-license-to-offer-regulated-crypto-products-in-europe/" target="_blank">approval from the Cyprus regulator</a> last March and obtained full authorization as a CIF in September. Though the Cypriot license did not allow the exchange to offer crypto directly, it can provide derivative products. Additionally, the license was essential as the exchange can passport it to provide services within the entire European Economic Area (EEA).</p><p>"The Company is regulated by CySEC under the provision of Investment Services Law and is authorized to provide investment services in Derivatives and/or other financial instruments. However, it is not licensed by CySEC to engage in the direct trading of crypto assets," the Cypriot regulator said in a statement.</p><p>The regulator justified its action as the exchange is under suspension for allegedly violating Cyprus laws around "the suitability of the members of the management body" and "the Safeguarding of Client Assets, Product Governance Obligations and Inducements, in relation to the organizational requirements for safeguarding the client's assets."</p><p>With the suspension of the license, the Cypriot entity can no longer provide investment services, accept new clients or advertise its offerings. However, it can fulfil all pending client orders and return client funds and financial instruments.</p><p>"CySEC has no option but to scrutinize crypto companies after this and so does the rest of the world. CySEC has unfortunately had issues with other higher risk products such as CFDs, where despite the many product interventions we’ve seen come out of ESMA, CySEC struggled with their implementation and supervision in their local jurisdiction, so without doubt they will be highly concerned about this now and without doubt we can expect to see more audits happening by them," Kirketerp-Møller added.</p><p>The Bahamas Headquarters</p><p>The authorities in the Bahamas also took strict action against FTX, <a href="https://www.financemagnates.com/cryptocurrency/the-bahamas-freeze-ftxcom-assets-japan-halts-local-operation/" target="_blank">freezing all of its assets</a> last week. Now, the island's police are looking into the possibility of any 'criminal misconduct' by FTX.</p><p>"In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd, a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred," the Royal Bahamas Police said.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Binance Gains Crypto License in Cyprus

<p>Crypto exchange Binance further strengthened its regulatory position with a new license from Cyprus Securities and Exchange Commission (<a href="https://www.financemagnates.com/tag/cysec/" target="_blank">CySEC</a>). The Class 3 registration as a Crypto Asset Services Provider (CASP) has been granted to the locally formed Binance Cyprus Limited on October 20.</p><p>“Registration in Cyprus is an important step in our European growth and is another sign of our commitment to the region,” said Binance’s Executive Vice President of Europe, Martin Bruncko. </p><p>Under the new license, <a href="https://www.financemagnates.com/tag/binance/" target="_blank">Binance</a> can offer a wide range of crypto offerings, including spot, custodian, <a href="https://www.financemagnates.com/terms/s/staking/" target="_blank" id="ebfdd4d9-00b3-41ff-bff5-878cd2eb105f_1" class="terms__secondary-term">staking</a>, and card services.</p><p>“We look forward to building out our local team in Cyprus and helping to develop the local crypto ecosystem,” Bruncko added.</p><p>Regulation Is Priority</p><p>Binance is the largest global <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> in terms of the trading volume. It established its dominance without obtaining any proper regulatory permission. However, an array of regulatory backlash against the exchange forced it to change its strategy and seek licenses.</p><p>In Europe alone, Binance obtained regulatory permissions in France, Italy, and Spain, apart from the latest Cyprus license. It also expanded its regulated presence in the Middle East with permissions in <a href="https://www.financemagnates.com/cryptocurrency/news/binance-strengthens-middle-east-presence-with-new-dubai-license/" target="_blank">Abu Dhabi</a>, Dubai, and Bahrain.</p><p>Cyprus, which is already a favorite to forex and CFDs brokers, is now attracting cryptocurrency exchanges with its clear guidelines. Earlier, <a href="https://www.financemagnates.com/cryptocurrency/news/ftx-gains-cysec-license-to-offer-regulated-crypto-products-in-europe/" target="_blank">FTX</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/binance-strengthens-middle-east-presence-with-new-dubai-license/" target="_blank">Crypto.com</a>, two competitors of Binance, also received the Cypriot license.</p><p>Binance’s founder and CEO, Changpeng Zhao, said: “Binance has some of the most thorough AML and CTF compliance policies in the industry. Recognition of the efforts we have made to be on the leading edge of compliance that our registration in Cyprus represents is testament to that.”</p><p>Meanwhile, CySEC’s Chair, Dr. George Theocharides, recently alarmed retail investors against the <a href="https://www.financemagnates.com/cryptocurrency/cysec-chair-warns-against-crypto-investment-risks-endorses-mica/" target="_blank">risks of crypto investments</a>. He also advocated for the 'urgent need' for crypto regulations and counted the benefits of the proposed EU Regulation on Markets in Crypto-Assets (MiCA).</p> This article was written by Arnab Shome at www.financemagnates.com.

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CySEC Chair Warns against Crypto Investment Risks, Endorses MiCA

<p>The rising popularity of cryptocurrencies and the associated risks with such investments have alarmed the Cyprus Securities and Exchange Commission (<a href="https://www.financemagnates.com/tag/cysec/" target="_blank">CySEC</a>). The Cypriot regulator’s Chair, Dr George Theocharides, warned crypto investors on Tuesday against “liquidity risk, volatility risk, cyber-risks, [and] fraud.”</p><p>“Investor interest in crypto-assets across the globe is on the rise and their inherent risks, along with a lack of proper information and the online hype, can lead to material losses for investors,” Dr Theocharides <a href="https://www.cysec.gov.cy/en-GB/investor-protection/financial-education/news-publications/93338/?uuid=18102022115542" target="_blank" rel="nofollow">wrote</a>.</p><p>He stressed the need for education of investors on the various risks involved in investments in crypto assets.</p><p>“The rapid growth of the crypto-asset markets and the eco-systems that support them pose new challenges and risks for all regulating bodies across the world. While technological innovation offers many promising possibilities – such as improved access to financial services – the immaturity of the ecosystem and the assets themselves, could inhibit the cultivation of trust in the sector,” Dr. Theocharides added.</p><p>Paving the Regulatory Path</p><p>CySEC is one of the favorite regulators for financial services companies that are targeting the larger EU traders. Its favorable licensing requirements compared to other European counterparts allow brokers to make the Mediterranean island their base.</p><p>The Cypriot regulator, which oversees several FX and CFDs brokers, also lured crypto companies by issuing industry-specific <a href="https://www.financemagnates.com/cryptocurrency/regulation/cysec-issues-a-new-directive-for-the-registration-of-crypto-providers/" target="_blank">registration directives</a> in mid-2021. Moreover, the move succeeded as major crypto firms like <a href="https://www.financemagnates.com/cryptocurrency/regulation/cryptocom-obtains-regulatory-approval-from-the-cysec/" target="_blank">Crypto.com</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/ftx-gains-cysec-license-to-offer-regulated-crypto-products-in-europe/" target="_blank">FTX</a> headed to the island.</p><p>Now, Dr Theocharides is worried about several risks in the crypto industry. On top of that, he alarmed investors with aggressive marketing campaigns for several crypto projects that are even receiving paid endorsements from celebrities.</p><p>“Many crypto-assets have no tangible value – contrary to traditional securities, such as stocks or bonds, resulting in their value and price depending exclusively on supply and demand which in most crypto-assets can be highly speculative. This may lead to high volatility of prices and investors suffering large losses,” he said.</p><p>Furthermore, he highlighted the 'urgent need' for crypto regulations and counted the benefits of the proposed EU Regulation on <a href="https://www.financemagnates.com/cryptocurrency/can-mica-take-europe-to-the-crypto-promised-land/" target="_blank">Markets in Crypto-Assets</a> (MiCA), which is aimed to bring crypto-assets, crypto-assets issuers, and crypto-asset service providers under a common regulatory framework.</p><p>“CySEC is determined to play an important part in improving investor education on risks of crypto-asset investment, and it will remain vigilant of the growth of the sector, in anticipation of the passing of MiCA that would allow for its comprehensive supervision,” said the CySEC Chair.</p> This article was written by Arnab Shome at www.financemagnates.com.

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FTX EU Secures License from CySEC in European Expansion Move

Following its acquisition of a local investment firm, FTX Europe said it has received the Cyprus Investment Firm License as granted by the country’s Securities and Exchange Commission (CySEC). (Read More)

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British fintech firm granted crypto license in Cyprus

Revolut, a British Fintech firm, has obtained a regulatory license to extend its services to Cyprus. The firm announced the development in a release on [...]

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Revolut Gains CySEC's Approval to Offer Cryptocurrency Services

<p>The digital bank, Revolut has been authorized by <a href="https://www.financemagnates.com/terms/c/cysec/" target="_blank" id="37d97d82-59f8-4ce2-94d2-21c5bdc82663_1" class="terms__main-term">CySEC</a> to offer crypto services as a crypto-asset service provider. The approval allows Revolut to offer cryptocurrencies to European clients including Norway.</p><p>Revolut is valued at $33 billion and has approximately 17 million clients in the EU bloc. Revolut's crypto hub will be in Cyprus.</p><p>Revolut did apply for a license in the UK, it is currently under the FCA's temporary registration list. The reason why the digital bank chose Cyprus is to ensure it is under European regulations prior to <a href="https://www.financemagnates.com/cryptocurrency/can-mica-take-europe-to-the-crypto-promised-land/" target="_blank">MiCA</a> enforcement, which will not disrupt its services.</p><p>Earlier this month, Revolut received in-principal approval from the Monetary Authority of Singapore, offering more than 80 tokens in their platform, including Apecoin, the Sandbox, Request and more.</p><p>Emil Urmanshin, the Crypto General Manager at Revolut, said: "We've given a big boost to our offering while empowering people to take more control of their finances and giving them safe access to new tools and services being built in crypto."</p><p>Urmanshin added that crypto assets were between five and ten percent of the company's revenue.</p><p>Revolut 'Learn & Earn'</p><p>Revolut launched its 'Learn & Earn' courses that reward clients with tokens (DOT). The courses focus on cryptocurrencies and <a href="https://www.financemagnates.com/terms/b/blockchain/" target="_blank" id="be18ed01-45fc-4044-b447-06802a10dbcd_1" class="terms__secondary-term">blockchain</a> technology.</p><p>The courses have been a success as over 1 million clients have completed the courses.</p><p>Despite the high inflation in the UK, transactions from the UK have increased by 20% compared to the same period last year.</p><p>As opposed to other crypto companies such as <a href="https://www.financemagnates.com/cryptocurrency/coinbase-posted-over-1-billion-losses-in-q2-2022/" target="_blank">Coinbase</a>, Revolut announced that it is increasing its global workforce by 20%. Approximately 20 new crypto jobs were offered in the UK alone.</p><p>Aside from cryptocurrencies, Revolut launched a new booking service ('Stays') earlier this year.</p><p>The service offers customers a 10% cashback, no booking fees will be charged by Revolut.</p> This article was written by Matti Williamson at www.financemagnates.com.

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CySEC Alarms against Use of Crypto Assets by Sanctioned Russians

The Cyprus Securities and Exchange Commission (CySEC) issued a notice on Tuesday, asking all regulated entities to be aware of sanction evasion attempts by flagged Russian individuals and entities.

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FTX Gains CySEC License to Offer Regulated Crypto Products in Europe

Crypto exchange giant, FTX has expanded its footprint in Europe with the establishment of a new entity and obtaining a regulatory license from the Cyprus Securities and Exchange Commission (CySEC).

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CySEC Publishes Policy Statement for Crypto Firms’ Registration

The new rules will define and give individual status to crypto service providers.

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Binance Seeks to Deregister Cypriot Subsidiary

Cryptocurrency exchange Binance, which obtained its 7th regulatory license in the European Union region in January, has applied for the deregistration of its local unit in Cyprus. The exchange gained a Cypriot license to operate as a crypto asset services provider in October last year.

“Binance Cyprus Limited under examination for application for deregistration,” Binance’s profile on the website of the Cyprus Securities and Exchange Commission (CySEC) currently reads. However, the Cypriot watchdog did not state why the exchange is seeking to withdraw its local unit in the island country.

The move to pull away from Cyprus comes as Binance and rival Coinbase face regulatory scrutiny in the United States. Earlier in the month, the US Securities and Exchange Commission (SEC) sued Binance and Changpeng Zhao, its CEO, alleging that the exchange and its chief operated crypto exchanges (Binance.com and Binance.US) and offering unregistered securities.

Binance Prepares for MiCA

While CySEC did not explain why Binance was leaving the jurisdiction on its website, a Binance spokesperson told CoinDesk the exchange decided to pull the plug on its services in the country in order to focus its efforts on its “fewer regulated entities in the EU.”

The cryptocurrency exchange further explained that it was preparing its business to be compliant with the landmark crypto rules, Markets in Crypto Assets (MiCA), which was recently ratified by the two legislative bodies of the European Union. The law is expected to go live sometime in 2024.

MiCA has been described as the world’s first comprehensive crypto law. The regulation seeks to protect European consumers, enshrine environmental sustainability and prevent money laundering in the crypto industry.

When it comes into force next year, MiCA will require digital asset exchanges and crypto wallet providers to obtain a license to operate within any country in the European Union region. It will also require stablecoin issuers to hold sufficient reserves.

Where Does Binance Stand?

Meanwhile, as the SEC's case against Binance continues in the United States, the cryptocurrency exchange is making efforts to keep the operations of its local unit in the country from crumbling. However, the exchange excited Canada last month, blaming the country's requirements around stablecoins and investor limits.

On the contrary, Binance re-entered the Japanese crypto market in May despite its rivals’ retreat from the country. This is even as the exchange disclosed plans to move its Japan-based customers to its new locally compliant platform by year-end.

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CySEC Extends FTX Europe's License Suspension until September End

On Wednesday, the Cyprus Securities and Exchange Commission (CySEC) confirmed an extension on the suspension of FTX (EU) Ltd's authorization until the end of September 2023.

FTX Europe's License Suspension

The Cyprus Investment Firm (CIF) license was initially suspended on 11 November 2022 following the bankruptcy filing of FTX.com, Alameda Research, and more than 130 affiliates. The suspension was then extended until the end of March 2023, which has now been extended even further.

FTX Europe is headquartered in Switzerland and obtained a license from the CySEC in March 2022. Though the Cypriot license has not allowed the exchange to offer crypto directly, it can provide derivative products. Additionally, the license has been essential as the exchange can passport it to provide services within the entire European Economic Area (EEA).

FTX Europe Starts to Process Withdrawals

While the US bankruptcy proceedings of FTX and its affiliates are ongoing, FTX Europe recently launched a separate website to facilitate withdrawals for its customers. However, the entity did not reveal the number of withdrawals it processed in two weeks. Moreover, FTX Japan initiated withdrawals for its customers and processed over $50 million in digital assets and fiats within 24 hours.

Earlier, the CySEC Chair issued a statement confirming the regulator's role in ensuring swift withdrawals.

"We are grateful to the FTX Group Administrators for their collaboration and support towards these efforts. Safeguarding the interests of investors is of paramount importance, and CySEC will continue to hold FTX EU Ltd to account to ensure all withdrawal requests are processed swiftly and appropriately," said Dr George Theocharides, the Chair of CySEC.

FTX Europe operated relatively independently from its tainted Bahamas-based partner, FTX.com. At the request of FTX management, a US court also permitted the sale of FTX Europe and three other FTX entities, FTX Japan, LedgerX, and Embed. Though the FTX management previously revealed that more than 110 potential buyers are willing to acquire these businesses, there is no additional update on any potential deal.

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Cyprus freezes crypto applications ahead of EU-wide MiCA transition

The CySEC has warned crypto asset service providers of coming changes as the continent braces for MiCA.

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Backpack Exchange and FTX clash over FTX EU ownership

The ownership of FTX EU has become a point of contention between Backpack Exchange and the FTX estate.

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