This suspension was first initiated on November 11, 2022, during FTX’s collapse in the US, and has since been extended four times. According to CySEC’s latest decision, FTX Europe’s activities will be stopped within the framework of these bans, which will last until May 30, 2025.

During this period, the company will not be able to provide investment services, enter into new business agreements, accept customers and promote itself as an investment service.

Despite these limitations, CySEC allows FTX EU to complete certain transactions for existing customers and return customer funds. This means that the company is not completely shutting down, but merely limiting its operations.

In the published announcement, it was stated that CySEC’s reason for taking this decision was to allow FTX EU to take the necessary steps to comply with currently applicable investment and regulated market laws.

During this period, users will only be able to view their balances or make withdrawals on FTX Europe’s website; However, no trading opportunities will be offered.

Following FTX’s bankruptcy in November 2022, the Cyprus SEC suspended the license of its European arm, FTX Europe. The suitability of the members of FTX Europe’s board of directors and the need to protect customer assets were put forward as the reason for this decision.

The suspension of the license was also considered as a step in line with Cyprus’ commitment to ensure the necessary regulatory standards for financial service providers to operate in the market. FTX EU will have to complete the compliance process determined by CySEC in order to regain its suspended license.

FTX Europe was originally a startup company called Digital Assets AG based in Switzerland. In 2021, FTX acquired this company for a high price of $ 323 million and changed its name to FTX Europe. However, financial difficulties that emerged after the collapse of FTX caused this purchase to be questioned.

According to a report from Reuters, FTX’s restructuring team aimed to recover some of the spent funds, stating that the acquisition was a “major overpayment.”

However, as a result of this process, the disputes were resolved and FTX Europe was sold back to its former owners for only $32.7 million. This figure corresponded to only 10% of the initial purchase price.

FTX Europe’s operations in Cyprus started after it was approved by CySEC in 2022. FTX EU aimed to expand its activities in Europe by opening a regional center in Cyprus in addition to its main center in Switzerland. However, the parent company’s bankruptcy and license suspension disrupted these expansion plans of FTX EU.

It seems that CySEC will continue to closely monitor the steps FTX EU will take to comply with current regulations and will continue its decisions to restrict the company’s activities until compliance is achieved.

This development stands out as an example of Cyprus’ regulatory role over companies in the crypto market and its efforts to protect investors. Whether FTX Europe can reopen in the future will depend on how quickly it can meet CySEC’s requirements.