“We are continuing to work with CySEC and regulators across the globe to be the leader in the digital asset industry when it comes to meeting the financial standards that are expected of traditional financial institutions.”
FTX Europe, the European-based subsidiary of United States-headquartered crypto exchange FTX, has received approval from the Cyprus Securities and Exchange Commission (CySEC) to operate as a Cyprus Investment Firm (CIF) allowing the company to fully own the local investment firm it previously acquired.
As a CySEC-authorized firm, FTX Europe will enjoy a EU passport that allows the trading platform to legally operate across the European Economic Area under the ESMA umbrella.
FTX wants to become one of the most regulated exchanges in the world”
Patrick Gruhn, Head of FTX Europe, commented: “After launching our European operations earlier this year we’re excited to receive approval from the regulators in Cyprus. Operating under this license will further our goal of being a European entity regulated to the highest standard. We look forward to continuing our productive relationship with CySEC as we continue to expand our European offerings.”
Sam Bankman-Fried, CEO & Founder of FTX, added: “Securing this license in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world. We are continuing to work with CySEC and regulators across the globe to be the leader in the digital asset industry when it comes to meeting the financial standards that are expected of traditional financial institutions.”
MiFID II license held to much higher standards than local registrations
FTX EU will be required to adhere to rigorous financial standards under European Directive 2014/65/EU on Markets in Financial Instruments (commonly known as “MiFID II” framework), which include the segregation and protection of client funds, full transparency of its business operations, and capital adequacy controls.
The Cyprus Investment Firm License granted by CySEC allows FTX EU to serve the whole European Economic Area, under a full MiFID II license, which is held to much higher standards than local registrations as Crypto Asset Service Providers. This puts FTX EU in a top position among crypto exchange across the globe.
The European Economic Area includes the member states of the European Union, Iceland, Liechtenstein, and Norway.
FTX about to start Middle East operation
FTX Exchange FZE, the Dubai-based subsidiary of FTX Europe, has joined the celebration, with chairman board Mohammad Hans Dastmaltchi saying the approval is a big boost to FTX’s international growth plans, having recently launched its operations in Europe, and comes at a time when the Middle East division is set to commence operations soon.
“This is an important milestone for FTX that will help consolidate the company’s position as a leader in the international crypto exchange market”, said Mohammad Hans Dastmaltchi.
Indeed, the Dubai operation received a provisional license from Dubai’s Virtual Asset Regulatory Authority (VARA) that will enable the company’s VA Exchange to deploy regulated crypto derivatives products, and trading services to Qualified Institutional Investors across the MENA region. The VARA MVP Licence grants FTX permission to act as a Clearing House, operate an NFT Marketplace, and provide Custodial Services.
