Cyprus Authorities to Suspend FTX EU Crypto License


Cyprus authorities to suspend FTX EU Crypto license. FTX is in danger of losing its crypto license issued by the Cyprus financial regulator, Bloomberg reported on Friday.

The license gave Sam Bankman-Fried digital asset exchange services in the European market and rights. Friday’s suspension joins a string of shocking developments since FTX’s sudden collapse that has rattled investors and the crypto industry.

FTX, Sam Bankman-Fried’s struggling cryptocurrency exchange, may lose its European digital special rights license as Cypriot regulators mull about the decision following the spread of worship. In July, the Cyprus Securities and Exchange Commission (CySec) approved FTX for “operating rights”. Wink management has enabled SBF product exchange to offer its services to all markets in Europe. The regional headquarters in Switzerland were announced alongside the legal victory, EthereumWorldNews reported at the time.

Bloomberg reported on Friday that CySec may reverse the decision and suspend the license. Such a move would render all FTX operations in Europe illegal until further notice. As of press time, the crypto exchange is in the middle of a multi-billion dollar saga and has been the subject of many investigations.

Cyprus Authorities to Suspend FTX EU Crypto License
Cyprus Authorities to Suspend FTX EU Crypto License

FTX Meltdown calls a formal review

US federal agencies such as the Commodity Futures Trading Commission (CFTC), the Department of Justice and the Securities and Exchange Commission (SEC) have begun investigations into FTX and US subsidiaries of FTX. WE Regulators have also been involved in Binance, another crypto exchange, and what the platform may know about the SBF company.

Apparently, Binance approved the exchange purchase agreement from Bankman-Fried after reviewing the documents. Withdrawals have now stopped on crypto exchanges, as many reports from users are unable to withdraw their assets. Tron founder Justin Sun has revealed plans to allow users to withdraw certain tokens at a 1:1 ratio with virtual currencies such as Tron (TRX) and Huobi (HT) tokens to name just a few.

Bankman-Fried tweeted that she is trying to raise capital to solve the water shortage problem. As at the time of reporting, SBF has not made any progress in those efforts. Reports from Bloomberg, CoinDesk, and the Wall Street Journal estimate that the crypto exchange needs an investment of more than $6 billion to stay afloat.

A big hole in the balance sheet appeared when the brokerage borrowed money from Alameda Research, the big business founded by Bankman-Fried. Since FTX entered bankruptcy, many executives and employees have left the company or expressed feelings of resignation. Sources say that few in the exchange are aware of the extent of the financial crisis and other decisions that may have led to the current situation. The company’s former marketing manager Zane Tackett told VIP customers that the whole team had “no idea” what was really going on.

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