Cyprus

CySEC requested FTX’s European arm suspend operations prior to bankruptcy: Report

FTX Europe is one of roughly 130 companies in FTX Group that will be a part of bankruptcy proceedings in the United States.

The Securities and Exchange Commission of Cyprus, or CySEC, reportedly issued a statement amid FTX filing for Chapter 11 bankruptcy in the United States requesting the exchange halt operations for its Europe arm.

According to a Nov. 11 Reuters report, the CySEC said it had asked FTX Europe to “suspend its operations and to proceed immediately with a number of actions for the protection of the investors” on Nov. 9. It’s unclear why the financial regulator chose to reiterate its call to the crypto exchange, given that FTX Europe is one of roughly 130 companies in FTX Group that will be filing for bankruptcy.

CySEC approved the FTX arm to operate in the island nation from its regional headquarters in March, with its European headquarters based in Switzerland. Amid FTX’s liquidity issues, global financial policymakers have responded with suggestions for additional regulations on crypto firms, as well as freezing assets with the exchange’s local businesses, as was the case in the Bahamas.

FTX CEO Sam Bankman-Fried said on Nov. 11 he would be working on “giving clarity on where things are in terms of user recovery” as soon as possible. He resigned amid bankruptcy proceedings, with John Ray taking over as CEO.

Crypto.com scores regulatory approval from Cyprus SEC

Crypto.com exchange follows in FTX’s footsteps by targeting aggressive expansion in Europe after receiving CySEC approval.

Singapore-based cryptocurrency exchange Crypto.com continues to aggressively expand its reach, becoming the latest crypto firm officially authorized to operate in Cyprus.

Crypto.com has received regulatory approval from the Cyprus Securities and Exchange Commission (CySEC), the firm announced to Cointelegraph on Friday.

The approval enables Crypto.com to offer a number of products and services to customers in Cyprus in compliance with local regulations. The new regulatory milestone comes in line with Crypto.com’s growing global presence as the firm has been actively expanding its operations, receiving approvals to operate in countries like Italy, Greece and Singapore.

According to Crypto.com co-founder and CEO Kris Marszalek, the exchange currently prioritizes Europe as the main region for continued expansion. That is a “testament to our commitment to compliance and collaboration with regulators,” he said.

Crypto.com is not the only cryptocurrency exchange that has been approved to operate in Cyprus. Major rival exchange FTX has also been expanding in Europe after receiving approval from the CySEC in March 2022. Other exchanges like Coinbase have also been increasingly interested in expanding in Europe amid the ongoing bear market.

Despite global exchanges increasingly moving in the Cypriot market, the government of Cyprus has not provided too much certainty about cryptocurrency regulation in recent years.

Major local financial institutions, including the Bank of Cyprus, were reportedly blocking Bitcoin (BTC)-related transactions in 2021. In September, CySEC disclosed plans to increase oversight of cryptocurrencies by integrating the European Union’s Anti-Money Laundering regulations into Cypriot law.

The Crypto.com exchange allows users to not only buy and sell more than 250 cryptocurrencies but also features services like crypto-enabled Visa cards. The firm has been actively working to simplify payments on its platform, introducing the Google Pay option for Android users in July.