FTX Europe, the European subsidiary of FTX, has launched a new website domain, ftxeurope.eu, for its customers to withdraw their balance from the platform. The domain was approved by the Cyprus Securities and Exchange Commission (CySEC) and will only offer balance withdrawal services. The new domain will not provide any products or other services.
FTX Europe is currently under licence suspension as per the CySEC register. The company was granted approval by CySEC to offer regulated cryptocurrency products in Europe in March 2022. The company had earlier announced its plans to provide its services through the domain ftx.com/eu.
However, in the aftermath of the collapse of FTX, CySEC suspended FTX Europe’s operating licence for violating the country’s regulated market laws. The regulator found that FTX Europe had unsuitable members on its management board and was not meeting the organisation’s requirements for safeguarding clients’ assets.
The suspension was initially issued for one month, but in December 2022, CySEC extended it to March 2023 to allow FTX Europe to comply with the relevant provisions of the Investment Services and Activities and Regulated Markets Law of 2017. The extension allowed FTX Europe to complete all its transactions and return all funds and financial instruments belonging to clients.
FTX Europe’s new domain for withdrawal of customer balance is currently operational. However, the company’s primary domain, ftx.com/eu, remains unresponsive.
CySEC Approves New Website for FTX EU Customer Withdrawal
CySEC approved the new domain, ftxeurope.eu, for customer withdrawal from FTX Europe. The regulator modified the public profile of FTX Europe on its register on March 7, 2023, to show the approved domains. However, CySEC is yet to respond on the matter.
FTX Europe Faces CySEC Suspension
FTX Europe, headquartered in Switzerland with regional headquarters in Cyprus, was granted full authorization as a Cyprus Investment Firm (CIF) in September 2022, enabling it to offer crypto derivatives products in Europe. However, CySEC suspended FTX Europe’s operating licence for violating the country’s regulated market laws. The suspension was initially issued for one month, but in December 2022, CySEC extended it to March 2023 to allow FTX Europe to comply with the relevant provisions of the Investment Services and Activities and Regulated Markets Law of 2017.
FTX Europe, which was previously K-DNA Financial Services Limited, was renamed after being acquired by FTX. However, the collapse of FTX led to the suspension of FTX Europe’s operating licence by CySEC. The regulator found that FTX Europe had unsuitable members on its management board and was not meeting the organisation’s requirements for safeguarding clients’ assets.
What does it mean for bankrupt FTX?
The creation of a new website by FTX Europe for balance withdrawal could indicate that the exchange is taking steps to settle its outstanding obligations with its customers. The fact that the new domain name has been approved by the Cyprus Securities and Exchange Commission (CySEC) suggests that the regulator is aware of and has likely approved the move.
However, it is important to note that FTX Europe is still under licence suspension by CySEC. This means that the exchange is currently not authorised to offer any regulated cryptocurrency products in Europe, including derivatives products.
It is unclear at this time what the long-term implications of the new website and domain registration could be for FTX Europe and its customers. The fact that the website offers no products or services apart from balance withdrawal suggests that the exchange is primarily focused on repaying its customers.
It is also important to note that FTX Europe is a separate entity from the parent company, FTX, which reportedly went bankrupt in November 2022. The bankruptcy of FTX may have contributed to the suspension of FTX Europe’s operating licence by CySEC. However, it is not clear whether FTX Europe’s financial standing is directly linked to that of FTX.
Overall, the creation of a new website for balance withdrawal by FTX Europe raises more questions than answers. It remains to be seen what impact this move will have on the exchange and its customers, and whether it is a sign of a larger restructuring effort or simply a way for the exchange to fulfil its obligations to customers.
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