Cyprus' financial regulator has extended the suspension of FTX's European operations for another six months until May 30, 2025. This comes just days before the cryptocurrency exchange "celebrates" the second anniversary of its collapse.
A notice issued by the Cyprus Securities and Exchange Commission (CySEC) states that FTX EU is prohibited from providing cryptocurrency services, advertising, and registering new users. However, the exchange can still complete transactions and refund clients’ funds.
Users who do not withdraw funds will be able to keep them in a "separate client account" for six years.
Notice to the Cyprus Securities and Exchange Commission
This is the fourth time that CySEC has restricted the operations of FTX's European division. The first such notice was issued on November 11, 2022, when the exchange filed for bankruptcy in the United States. At that time, the Cypriot regulator cited "management incompetence" and the need to protect client assets.
Before its first ban, FTX EU had only been operating as an EU-regulated company for eight months. FTX's parent company launched its European division in 2021 by acquiring Swiss startup Digital Assets AG for $323 million. FTX EU has now been bought back by its original owner for $32,7 million.
