The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of Cyprus Investment Firm FTX (EU) Ltd’s authorization, barring it from offering investment services until late May 2025. This extension allows the firm time to comply with the Investment Services and Activities and Regulated Markets Law of 2017.
Suspension Details and Limitations for FTX (EU)
Under the suspension, FTX (EU) is prohibited from providing investment services, entering new business transactions, or accepting new clients. It is also barred from promoting itself as an investment service provider. However, the firm is permitted to complete ongoing transactions and return funds to existing clients if aligned with client preferences, without violating regulatory provisions during the suspension period.
CySEC has not yet received a response from FTX (EU) regarding this decision.
New Regulatory Guidelines for Cyprus Investment Firms
CySEC has also introduced new guidelines that will affect Cyprus Investment Firms (CIFs) starting in early 2025. These guidelines align with the European Banking Authority’s standards, clarifying capital adequacy, risk management, and governance for CIFs, similar to banking groups.
Additionally, Cyprus will stop accepting notifications from European Economic Area firms for cross-border crypto services by October 30, 2024. Firms submitting notifications before this deadline can continue operations during a transitional period until July 2026 or until they receive authorization under the Markets in Crypto-Assets (MiCA) regulation.
These measures are part of a broader initiative to enhance regulatory clarity and strengthen investor protections in Cyprus’s investment and crypto-asset sectors.
Related: Scammers Posing as CySEC Officials Reappear, Regulator Issues Fresh Warning
