The Cyprus Securities and Exchange Commission (CySEC) has announced an extension of the suspension of the authorization for Cyprus Investment Firm FTX (EU) Ltd.

FTX Suspension Extended Until 2025

This decision follows earlier announcements over the past year and a half regarding the company's compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term. The suspension is now extended until late May 2025, providing the company time to meet the requirements of the Investment Services and Activities and Regulated Markets Law of 2017.

During this suspension, FTX (EU) is prohibited from providing or carrying out investment services or activities. The company cannot enter into any business transactions or accept new clients. It is also barred from advertising itself as a provider of investment services.

However, the company may complete transactions that are currently in progress and return funds and financial instruments to existing clients, as long as these actions align with client wishes. These transactions will not be considered a violation of regulatory provisions during the suspension period.

Finance Magnates has contacted FTX (EU) for a comment on this matter. However, the firm has not yet responded as of the time of publication.

New Guidelines Impact Cyprus Investment Firms

Cyprus's financial regulator is permitting crypto-asset service providers to operate under existing national regulations until the implementation of new EU-wide rules.

The CySEC announced that it will stop accepting notifications from European Economic Area firms for cross-border crypto services on October 30, 2024, as reported by Finance Magnates.

Firms that submit notifications by this deadline can continue their operations during a transitional period until July 2026 or until they receive a MiCA authorization decision.

Additionally, CySEC is adopting new guidelines from the European Banking Authority for FX/CFD brokers operating as Cyprus Investment Firms (CIFs), effective early 2025.

These guidelines clarify the group capital test for investment firm groups under the Investment Firms Regulation, requiring compliance with consolidated regulatory standards akin to those for banking groups.

This encompasses capital adequacy, risk management, and governance, while also defining conditions for CIFs to be considered simple and low-risk, potentially allowing for special permissions regarding capital requirements.