The Cyprus Securities and Exchange Commission (CySEC) has issued a statement that regulators have called for the European arm of the exchange to cease operations while FTX is filing for Chapter 11 bankruptcy in the United States. It is said that
According to a Reuters report on November 11, CySEC said on November 9 that it had asked FTX Europe to “suspend its operations and immediately proceed with a number of actions to protect investors.” It is unclear why the financial regulator chose FTX Europe to repeat the call to the crypto exchange as it was one of about 130 companies in the FTX Group to file for bankruptcy.
In March, CySEC approved the FTX division from its regional headquarters with its European headquarters based in Switzerland to operate in the island nation. Amid FTX liquidity concerns, global monetary policymakers are responding with additional regulations on cryptocurrency firms and proposals to freeze assets with local firms on exchanges, as was the case in the Bahamas. .
Related: Crypto.com has received regulatory approval from the Cyprus SEC
FTX CEO Sam Bankman-Freed Said On November 11th, he plans to “clarify the situation regarding user recovery” as soon as possible. He resigned in the midst of bankruptcy proceedings and John Ray took over as CEO.