The Cyprus Securities and Exchange Commission (“CySEC”) has notified the Malta Financial Services Authority that, with effect from 11 November 2022, it has wholly suspended the authorisation of FTX EU Ltd (“the Company”) pursuant to section 10(1) of Directive DI87-05 for The Withdrawal and Suspension of Authorisation (“DI87-05”), as there are suspicions of alleged violations of section 22(1) of The Investment Services and Activities and Regulated Markets Law of 2017, as in force (‘the Law’), as the Company does not appear to comply at all times with the authorisation conditions in:
- Sections 9(2)(a) of the Law, in relation to the suitability of the members of the management body; and
- Sections 17(9) of the Law, as specified in paragraph 4(1)(f) of the CySEC’s Directive DI87-01 for the Safeguarding of Client Assets, Product Governance Obligations and Inducements, in relation to the organisational requirements for safeguarding the clients’ assets.
For as long as the suspension of the authorisation is in force, and as provided for in section 9 of DI87-05, the Company is not permitted to:
- provide/carry out investment services/activities;
- enter into any business transaction with any person and accept any new client; and
- advertise itself as a provider of investment services.
The Company, provided this is consistent with the wishes of its existing clients, may proceed with the below actions, without such actions being considered as breach of section 7(a) of DI87-05:
- complete all its own transactions and those of its clients which are before it, in accordance with client instructions; and
- return all funds and financial instruments which are attributable to its clients.
Further detail in relation to the above can be obtained from the decision taken by CySEC dated 11 November 2022 which has been published on CySEC’s website.