The Cyprus Securities and Exchange Commission (CySEC) recently suspended and extended the Cyprus Investment Company (CIF) license of FTX (EU) LIMITED, a Cyprus subsidiary of the bankrupt cryptocurrency exchange FTX, until March 31, 2023.

CySEC stated that this decision was made to "protect investors and the orderly operation of the market" and to give subsidiaries one month to take necessary actions to comply with regulations.

The first suspension of FTX (EU) Limited's license was after the collapse of the Bahamian based cryptocurrency exchange in early November, which later filed for bankruptcy protection in the United States. Only two months ago, the subsidiary obtained authorization from the Cyprus regulatory authorities to provide its digital asset services in the country and throughout the EU region.

In the new statement, CySEC stated that FTX EU Limited is not allowed to provide or execute investment services or activities in the country. The subsidiary cannot engage in any commercial transactions with anyone or accept any new customers. In addition, subsidiaries cannot promote themselves as investment service providers.

However, subsidiaries can "complete all transactions between themselves and customers according to customer instructions". CySEC pointed out that the company can also return all funds and financial instruments belonging to customers.

In addition, FTX has added its US subsidiary FTX FTX.com to its bankruptcy filing. Alameda Research Limited, a subsidiary in the United States and Hong Kong, and approximately 130 other subsidiaries participated in its litigation proceedings. However, the lawsuit excluded four affiliated companies: FTX Digital Markets, FTX Australia, FTX Express Pay, and Ledger X (operating as FTX US Derivatives).

Suspension of FTX Other Licenses

The Kanto Finance Bureau of Japan ordered FTX Japan to cease its local operations in the country for the first time in early November, and recently postponed the suspension of its subsidiary until March 9, 2023. However, local regulatory authorities have pointed out that if a system is developed to properly carry out the overall operation of the subsidiary's digital asset trading business and is confirmed, it may revoke the suspension.

The Australian Securities and Investments Commission suspended the license of FTX Australia Private Limited in mid November until May 15, 2023. However, Australian regulatory authorities allow the subsidiary to provide limited financial services before December 19th.

Meanwhile, FTX co founder and CEO Sam Bankman Fried faces criminal charges in the United States due to the failure of the once beloved cryptocurrency exchange, which is estimated to have caused investors over $8 billion in losses. The struggling entrepreneur was released on bail on Thursday, with a huge personal recognition deposit of $250 million guaranteed by his parents.