Swiss Regulator Rejected FTX Europe's Trading License Application

FTX Europe, the European subsidiary of the now-collapsed global crypto giant, sought a trading license in Switzerland but failed. Meanwhile, the entity lost its Cypriot license amid the fallout.

There is no official confirmation on FTX's attempt for a Swiss trading license, but local publication NZZ reported on it, citing anonymous people close to the situation.

Based in Pfäffikon near Zurich, FTX Europe was operating in the European Union with a Cyprus Investment Firm (CIF) license. The license was granted in September, which allowed the European arm of FTX to offer crypto derivatives to retail customers within the European Economic Area (EEA). The Cypriot license has now been suspended.

The exchange's attempt to gain an "organized trading system" from Swiss banking regulator Finma was kept out of public attention. The license would have further strengthened FTX's regulatory position, making it one of the few cryptocurrency companies with a Swiss license.

On top of that, the Australian financial market regulator suspended the license of the local FTX entity until 15 May 2023, as the company entered into voluntary administration.

The Collapse of a Giant

FTX has grown aggressively since its establishment in 2019. The exchange was valued at $34 billion in its last funding round, but now venture capital firms have been writing off hundreds of millions of dollars in FTX investments.

FTX Trading Ltd., Alameda Research, and over 130 other affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers compensate affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition The bro Read this Term filed for Chapter 11 bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection in Delaware earlier this month. Interestingly, the Bahamas-based entity of FTX approached a New York court for Chapter 15 bankruptcy protection. Meanwhile, the Bahamas financial market regulator ordered the local entity to transfer all customers' digital assets to government-controlled crypto wallets.

Moreover, the bankruptcy filing of the exchange reveals some of the financial blunders of FTX. The exchange owes $3.1 billion to its top 50 creditors. The top individual alone is owed $226 million, and others are in the range of $21 million and $203 million.

FTX discloses its top 50 creditors are owed $3.1 billion.

The largest creditor is owed $226 million.

All names were redacted. pic.twitter.com/JGeddvMB7w

— Tom Dunleavy (@dunleavy89) November 20, 2022